Joint Media Release with Minister for Small and Family Business, Skills and Vocational Education Senator The Hon Michaelia Cash
The Country Liberals continue to back small business by increasing the instant asset write-off threshold from $20,000 to $25,000, effective immediately, and extending the initiative for another year beyond its existing June 2019 end-date.
The instant asset write-off will enable Territory small businesses with an annual turnover of less than $10 million to access the new $25,000 incentive from now until 30 June 2020.
Minister for Small and Family Business, Skills and Vocational Education, Senator Michaelia Cash said the increase and extension of this initiative will further improve cash flow for small business owners by bringing forward tax deductions, providing a boost to small business activity and encouraging more small businesses to reinvest in their operations, and replace or upgrade their assets.
“Our Government first introduced the $20,000 instant asset write-off in the 2015-16 Budget. In the first year alone, more than 300,000 small businesses took advantage of this opportunity – this equates to an average of approximately 800 businesses per day making an investment through this initiative,” Minister Cash said.
Country Liberals Senator for the Northern Territory, Nigel Scullion, said the Government will introduce legislation to give effect to this measure when Parliament returns.
“The CLP understands that when business owners are able to keep more of their own money, they are able to invest back into the business, boost productivity, grow the economy and create new and local jobs,” Senator Scullion said.
“Two thousand Territory businesses have benefited so far from the instant asset write-off and I encourage more businesses to reinvest or upgrade assets with 15,000 Territory small businesses able to claim the instant asset write-off.
“The increase and extension of the instant asset write-off builds on our Government’s record of backing small and medium businesses and the approximately seven million Australians they employ.”
“Businesses sadly continue to close under this inept Gunner Government which has no plan to turn the economy around or manage debt and just continues to blame the previous government.
“Only the Country Liberals can be trusted to manage the economy, guarantee essential services while getting the budget back into surplus, giving hard working Australians tax relief and all while paying down Labor’s debt.”
The Coalition Government has delivered:
- Tax relief for incorporated small and medium businesses, with turnovers of less than $50 million per annum. These companies will move to a 25 per cent tax rate by 2021-22;
- An increase to the rate of the tax discount for unincorporated small businesses with turnover below $5 million to 16 per cent by 2021-22; and
- An increase to the small business entity turnover threshold from $2 million to $10 million per annum, which has extended access to a range of tax concessions.
“Backing small business is part of our plan for a stronger economy to help them reach their potential and create more jobs,” Senator Scullion said.