Running a business is no easy gig, so it’s not surprising that many Australian business owners are extremely hopeful this year’s Federal Budget will help to relieve some of their financial pressure.
And the good news is, it has.
The 2019-20 Federal Budget focused on one key area to provide relief for Australian business owners – asset write-off.
Asset write-off for small and medium businesses
Small business owners with an aggregated annual turnover of less than $10 million will gain a further 12 month extension (until 30 June 2020) to claim an instant asset write off for eligible assets purchased. They will also receive an increase in the write off up to $30,000 (increased from the current level of $20,000) from 3 April 2019.
In addition, this measure will be extended to medium sized businesses with aggregated annual turnover of $10 million or more but less than $50 million.
Reduced tax liability resulting from the tax deduction, means Australian business owners will have more cash flow to potentially sustain and/or expand their businesses.
It is always important to remember that at this point, the Budget measures are only statements of proposed changes, and are not yet law.
With an election expected to occur in May 2019, it is still uncertain whether these proposals will become law.
Seek professional advice
Until these changes become law, you may want to consider seeking professional advice to understand how the implications of these changes may impact your business.
The information on this website has been prepared by BT, a part of Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian Credit Licence 233714 (Westpac), and is current as at 2 April 2019.
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The tax position described on this website on the 2019-20 Federal Budget update is a general statement and is for guidance only. It has not been prepared by a registered tax agent. It does not constitute tax advice and is based on current tax laws and our interpretation. Your individual situation may differ and you should seek independent professional tax advice. It is important to note that the policies outlined in this website are yet to be passed as legislation and therefore may be subject to change or further refinement. Superannuation is a means of saving for retirement, which is, in part, compulsory. The government has placed restrictions on when you can access your investments held in superannuation. The Government has set caps on the amount of money that you can add to your superannuation each year and over your lifetime on both a concessional and non-concessional tax basis. There will be tax consequences if you breach these caps. For more detail, speak with a financial adviser or registered tax agent or visit the ATO website.