Federal Budget 2019: Instant tax writeoff for businesses

Hundreds of thousands of Queensland businesses will be able to lower their tax bill under an expanded Federal Government initiative allowing them to instantly write off newly purchased assets.

HUNDREDS of thousands of Queensland businesses will be able to lower their tax bill under an expanded Federal Government initiative allowing them to instantly write off newly purchased assets.

Last night’s Budget revealed plans to immediately increase the value of assets that businesses can write off instantly from $25,000 to $30,000.

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The Government will also expand the scheme’s eligibility by allowing businesses with turnovers of up to $50 million a year to write off the assets they purchase.

Treasurer Josh Frydenberg said. “It can be used every time an asset under that amount is purchased, allowing a cafe to get a new fridge or grill, a plumber to buy new tools or a courier a new van.”

More than 350,000 businesses nationwide have already used the scheme to instantly write off assets.

The increased and expanded scheme will run until June 30, 2020.

It is expected to cost the Government $400 million over four years, as businesses claim their annual deductions.

It is hoped the scheme will improve business cash flow and boost business activity.

Expanding the scheme to businesses with a bigger turnover is expected to make 675,000 Queensland-based operations eligible to instantly write off their assets.

Mr Frydenberg said the initiative was another example of how the Coalition was helping small business.

“People running a small business put their livelihoods on the line,” he said.

“They start early and finish late. They manage the front desk and the back office.

“We want small business to prosper and we are backing them to do so.”