Budget: Small Business Wins $30,000 Write-Off

The Coalition has boosted its pitch to small business ahead of the federal election, increasing instant tax breaks for asset purchases and expanding eligibility to companies with turnovers of up to $50 million.Popular instant asset write-off rules will be immediately expanded from Tuesday night, with the threshold lifting to $30,000 from $25,000, and applying to multiple purchases.

Previously the rules covered businesses with an annual turnover of up to $10 million.

“Allowing a cafe to get a new fridge or grill, a plumber to buy new tools or a courier a new van,” the treasurer told Parliament. Louise Kennerly LAK

Treasurer Josh Frydenberg said increasing the cap to $50 million would make an additional 22,000 businesses eligible, and the new rules are set to remain in place until June 30, 2020.

Some 3.4 million businesses will be eligible under the expansion — part of the Coalition’s bid to counter Labor’s rival Australian Investment Guarantee plan.

Primary producers and tourism operators also benefit from the 2019 budget, as they will now be able to apply for a refund of any luxury car tax paid up to a maximum of $10,000, for vehicles acquired on or after 1 July 2019.

If you are looking to take advantage of this budget measure contact the team at PMG Finance today.

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