'Not notified well': Businesses educating customers on write-off rules

Small businesses, particularly in rural areas, aren't aware they can claim a tax break that the federal government has painted as stand-out policy to support the sector.

Suppliers of equipment to small businesses say it has fallen to them to educate their customers on the tax incentive - which allows them to write off new assets worth less than $20,000 - because of a lacklustre sales campaign from the government.

The instant asset write-off scheme was extended for another 12 months to June 30, 2019, after parliament passed an extension two weeks ago. The policy allows businesses with turnover of $10 million or less to claim an immediate deduction when buying business assets worth less than $20,000.

The policy has been in place since 2015 and has seen annual extensions at each federal budget since. The federal government has championed the policy in multiple budget speeches as a win for businesses who need to purchase equipment as well as those selling it.

Treasury data shows 300,000 businesses took up the scheme in its first year, while the average value of items written down has increased from $4000 to around $9000. Read more

Emma Koehn - Brisbane Times - 25 Sep 2018

Comments

We welcome relevant, respectful comments.
Please read our Comment Policy before commenting.
We also welcome direct feedback via Contact Us.
You may also want to ask our librarians.

Be the first to write a comment