THE Federal Government’s new Budget measures for small businesses will encourage upgrading equipment and technology as items up to $20,000 can be offset straight away.
The budget, released last month, outlines a number of measures to support small businesses, with one of the major highlights being an instant tax deduction on the whole cost of new assets up to $20,000.
Any of these assets – a lawnmower, industrial oven, coffee machine, printer, computers or tools – can be deducted from tax, as long as the business has an annual turnover of less than $2 million.
Accompanying this measure was a drop to small business taxes by 1.5 per cent, and unincorporated small businesses are to receive a 5 per cent tax discount – up to $1000 – each year.
Federal LNP Maranoa MP Bruce Scott said regional Australia is at the heart of the 2015-16 Budget with the electorate set to benefit from the Coalition Government’s commitment to bush communities, infrastructure, job creation and small business.
Mr Scott said Australia’s beating heart was its farmers and small business and that the government was committed to growing these sectors.
“Farmers will be able to write-off the accelerated depreciation of water assets, fodder storage and fencing from 1 July next year.
“This is in addition to the $333 million drought support package announced at the weekend,” he said.
“Small business will also receive a 5 per cent tax cut and will be able to claim an instant tax deduction for any work-related purchase up to $20,000.”