Former Federal Treasurer Joe Hockey introduced a tax initiative where small business could write-off $20,000 worth of depreciating assets, such as vehicles, computers and other office equipment, back in 2015. The scheme was set to run from July 2015 to June 2017 but that deadline may be extended. Here’s what you need to know.
The tax break is available to small businesses with an annual turnover of less than $2 million. They can claim up to $20,000 worth of depreciating assets each financial year. You can find out more about the initiative in one of our previous articles.
While the scheme is due to wrap up at the end of this financial year, Small Business Minister Michael McCormack is urging Treasurer Scott Morrison to extend it for at least another year.
It’s not a sure thing, as McCormack admits himself, but he’s hoping the Treasurer will consider his suggestion. He told The Sydney Morning Herald: “Obviously that’s a budgetary measure and I have presented it to the Treasurer and the Treasurer may have a different view. But I do think it has been excellent for small business”
We’ll have to wait and see if the Treasurer is receptive of this idea.
Are you a small business that has used this $20,000 tax write-off initative? Tell us how it has helped your business in the comments.