By SONJA KOREMANS
SMALL businesses will now officially have access to a $20,000 tax write-off to purchase items relating to their businesses after legislation passed the Senate on Monday.
A 1.5 per cent tax cut was also passed and the bill was given top priority in the Senate with its debate lasting less than an hour.
The former write-off threshold was just $1000.
Any small business or sole trader with an Australian Business Number is eligible for the tax deduction as long as their business has an annual turnover of less than $2 million.
The tax cut is valid from budget night through to 30 June, 2017.
The Minister for Agriculture, Barnaby Joyce has welcomed the small business incentive as well as a tax depreciation measure for farmers that also passed through the Senate on Monday .
The accelerated depreciation is for all primary producers regardless of turnover – which will see immediate write-off for new fencing and water infrastructure, and write-off over three years for fodder storage – started from 12 May 2015 and is ongoing with no expiry date.
“As a result of these measures, our farmers will now have more confidence to make the necessary investments in their farm businesses.
“It means more incentive to either build the water infrastructure they need, or to better manage their land through new fencing or to have the ability to store more fodder in case of drought,” Mr Joyce said.
“Accelerated depreciation measures will also encourage farmers to invest in drought preparedness when they are in a financial position to do so.“
The incentive for primary producers is in addition and separate to the instant write-off for purchases for small businesses which operates for the current and the next financial years only.
