Pressure on the nation’s small business owners was eased slightly on Tuesday when Prime Minister Scott Morrison announced an immediate increase to the level of the instant asset write-off.
The Morrison government’s plan raises the level from $20,000 to $25,000, and also sees the scheme extended until June next year.
“We are so serious about smaller family businesses, and we have put our money where our mouth is,” Prime Minister Morrison told delegates at his first official economic address of the year.
“The measure will allow more than three million eligible small and family businesses with a turnover of up to $10m a year, to keep $750m of their own money. Money that they have earned themselves, so they can reinvest back in their business and support more jobs and the wages of their 5.7 million workers.”
Dominique Lamb, CEO of the Australia’s largest and most diverse retail industry association, the National Retail Association said the policy had the potential to greatly impact local business owners in a number of key areas.
“Firstly, we expect this will encourage many business owners to make purchasing decisions that might otherwise have remained in the planning phase until next financial year,” Lamb said.
“We know from experience that as we move towards a federal election that discretionary retail activity can slow down, so we welcome any measure that will support small businesses and help them keep their employees in work.”
The NRA chief also said the announced tax deduction for business assets will improve small business owners’ support structures, suggesting employees are expected to benefit.
“We also know that may retail businesses have taken advantage of the $20,000 instant write-off for business assets. We believe this increase will allow them to invest further in their businesses and support their staff with new systems and equipment.
“This will be a very welcome boost to retail coffers in coming months, and we encourage both sides of politics to lock in behind the increased limit and timeframe.”