The $20,000 instant tax write-off for depreciating assets is now available to businesses with annual turnover up to $10 million and has been extended another 12 months to June 30, 2018.
The immediate write-off was previously available to businesses with annual revenue less than $2 million. Legislation passed in May has increased the revenue threshold to $10 million.
The Asset value limit was due to drop to $1000 from July 1 but it was announced in the Fedearl Budget that the $20,000 would be extended another year.
In more good news for small business, the company tax rate for businesses with a turnover less than $10 million on 1 July this year will reduce to 27.5 per cent. The Federal Government says this will benefit around 870,000 companies employing more than 3.4 million workers.
The Government plans to decrease the tax rate on all companies to 25 per cent by 2026–27.