The Federal Government is aiming to make it easier for small businesses to invest in machinery and grow their businesses by providing $290 million in cash flow support through the $20,000 instant asset write-off.
Up to 3.8 million small businesses with an annual turnover of less than $10 million will now be able to immediately deduct eligible assets costing less than $20,000 from 1 July 2023 until 30 June 2024.
Temporary full expensing was supposed to expire on 30 June 2023, but has been extended following calls by multiple industries to continue.
Temporary full expensing – otherwise known as instant asset write-off – has and will allow many print and visual communications businesses to buy new gear and become more productive and efficient – but will the $20,000 cap be a disadvantage for the industry?
The Council of Small Business Organisations Australia has called for an instant write-off extension for assets valued under $100,000.
Through the Budget, the Federal Government is also providing approximately 2.1 million eligible small businesses with cashflow relief by halving the increase in their quarterly tax instalments for GST and income tax in 2023–24.
Instalments will only increase by six per cent instead of 12 per cent, which it said better reflects the economic conditions currently faced by the sector.
It added that the relief strikes a balance between improving cashflow for small businesses and managing income tax and GST liabilities.
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