The Federal Government has extended the $150,000 instant asset write-off for another six months to 31 December 2020.
Australian businesses with annual turnover of less than $500 million will be able to take advantage of the support to invest in assets that will aid business as the economy reopens and COVID-19 restrictions are eased.
The Federal Government expects the measures will aid more than 3.5 million businesses across Australia. The instant asset write-off scheme is designed to help businesses stick to planned investments and encourage fast tracking investment to support economic growth in the short term.
The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided each costs less than $150,000. Assets can be new or second hand and could include a truck for a delivery business among many other things.
Legislative changes will be made to give effect to this measure, which is estimated to have a cost to revenue of $300 million over the forward estimates period.
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Treasurer Josh Frydenberg confirmed the outcomes of Treasury’s wage subsidy review will be provided on 23 July 2020.
In a doorstop interview at Meccania Engineering in NSW, Frydenberg said the JobKeeper program is legislated until September and highlighted the National Cabinet’s three stage process of easing restrictions which Treasury forecast to see 850,000 people back in work.
Frydenberg also said the construction, mining and agriculture have bounced back in demand earlier than expected.
“Construction is one sector where we’re starting to see more activity,” he said.
“Mining has been working effectively through the crisis and again strong demand for our exports has been reflected in commodity prices. We’ve also seen agriculture be another sector,” Frydenberg said.