Townsville businesses to benefit from instant asset write-off extension
Townsville business owners will be able to have more time to purchase equipment and receive an instant tax deduction after the $150,000 instant asset write-off was extended for six months.
Member for Herbert Phillip Thompson said the move to extend the deadline came following conversations with the local business community.
“I’ve had a lot of positive feedback about the instant asset write-off after the limit was increased to $150,000 earlier this year as part of our response to the coronavirus,” Mr Thompson said.
“This has allowed business owners to make major investments in plant and equipment to increase their profitability without having to wear the associated tax burdens. At the same time it’s provided a boost to the suppliers of that equipment giving a positive knock-on effect for our community.
“I’ve had good discussions with the Townsville Chamber of Commerce and individual business owners who suggested it would be beneficial to extend the deadline. After passing this feedback through to the Treasurer it’s great to see today’s announcement come to fruition.”
The instant asset write-off helps to improve cash flow for businesses with annual turnover of less than $500 million 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 provided each costs less than $150,000.
The extension will also give businesses additional time to acquire and install assets, as they will now have until the end of the year.
Assets can be new or second hand and could include for example a truck for a delivery business or machinery for a factory.
The initiative complements the other government support measures for businesses including the JobKeeper wage subsidy and cash flow support payments for eligible businesses. More information can be found at treasury.gov.au/coronavirus.
ENDS