The Morrison Government has today announced a $17.6 billion economic plan to keep Australians in jobs, keep businesses in business and support households and the Australian economy as the world deals with the significant challenges posed by the spread of the coronavirus.
Key Benefits to SME's:
- The instant asset write-off has been supercharged - threshold increased to $150,000 for businesses with an annual turnover less than $500 mil
- Accelerated depreciation scheme to support business investment - Deduct an additional 50 per cent of the asset cost in the year of purchase!
- A cashflow boost will be provided to small and medium-sized businesses
Supercharged instant asset write-off - threshold increased to $150,000 until 30 June 2020!
The instant asset write off threshold has been temporarily increased from $30,000 to $150,000 and access expanded to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
For example, assets that may be able to be immediately written off are a tractor for a farming business or a truck for a delivery business.
This expanded instant asset write-off begins immediately, so give us a call now if you'd like to discuss your options and / or get a pre approval in place.
Temporary investment incentive - Deduct an additional 50 per cent of the asset cost in the year of purchase!
Businesses with a turnover of less than $500 million will be able to deduct an additional 50 per cent of the asset cost in the year of purchase.
This incentive is also temporary and ends 30 June 2021.
Cashflow boost for small and medium-sized employers
Businesses with a turnover of under $50 million will have access to a tax-free payment of up to $25,000 to help boost cash flow.
The above measures are designed to support businesses to stick with the investments they had planned, and encouraging them to bring investment forward to support economic growth over the short term.
The above measures are temporary, and for more details you can read the full media release here.
Please feel free to call your Broker if you'd like to discuss any of the above. We will keep you updated with any further developments as more details come to hand.