The Morrison Government continues to back small business with the announcement that it will extend the instant asset write-off and temporary loss carry-back for an additional year.
This extension will enable businesses experiencing COVID‑19 related supply disruptions, or considering investing in projects requiring longer planning times, to take advantage of the incentives.
Barker businesses with annual turnover of less than $500 million will be able to take advantage of this extended timeframe to invest in assets to support their business as the economy reopens and coronavirus health restrictions continue to be eased.
Member for Barker Tony Pasin said this extension is great news for local businesses, giving them additional time to acquire and install assets.
“These measures will allow around 23,500 businesses in Barker to write off the full value of any eligible asset they purchase.” Mr Pasin said.
“They are designed to support Barker businesses to make that investment decision to grow their business and thereby support economic growth over the near term.“ Mr Pasin said.
The instant asset write-off also helps to improve cash flow for businesses by bringing forward tax deductions for eligible expenditure. The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets.
“Assets can be new or second hand and could include for example a truck for a delivery business or a tractor for a farming business.” Mr Pasin said.
Additionally, around 4,600 businesses in Barker will be able to use the extended loss carry back measure to support cash flow and confidence. This has helped businesses invest more in the local economy and to create local jobs.
Santos Ready Mixed Concrete General Manager, Paul Santos said the increase in the instant asset write off limit as well as the 12 month extension has assisted Santos Ready Mixed Concrete to upgrade their truck fleet.
“It has enabled us to bring forward the purchase of new trucks that we would normally have spread out over several years, with two new Australian made Kenworth trucks purchased in the current financial year and with more to come next financial year.” Mr Santos said.
“The Federal Government’s instant asset write off has really helped stimulate our businesses investment decisions during these difficult times.” Mr Santos said.
Mr Pasin said hardworking Australian businesses can rest assured that the Morrison Government will do all that is necessary to support them to bounce back stronger and get to the other side of this crisis.
“Small and family businesses are the local lifeblood of our economy and I want to do everything I can to assist them to thrive and employ more Australians,” Mr Pasin said.