Small Business are being encouraged to keep spending after the government said it would extend the instant write down for another year. This means that companies with an annual turnover of up to $10 million a year can write off any approved asset they buy for their business up to the value of $20,000 until June 30th. 2018.
The measure was first introduced in 2015, but will now be available to a further 90,000 businesses following the governments decision earlier in the year to redefine small businesses as being those with turnover of up to $10 million a year, up from those with an annual turnover of $2 million. The move which was announced by treasurer Scott Morrison in this years Budget has been welcomed by companies and industry bodies alike.
Small business owners are out there fighting for growth in their businesses every day and they deserve respect and support Mr Morrison said.
Backing up recently legislated tax cuts, small business with a turn over up to $10 million will continue to be able to immediately write off expenditure up to $20,000 for a further year. Last year the Government dropped the company tax rate for small companies to 27.5 percent, the lowest level in 50 years.
The popularity of the $20,000 tax concession led to almost 100,000 small businesses in Australia making claims in the first six months of it’s operation, according to Treasury data.
Businesses claimed a total of $418.5 million between July 1st and December 15th. 2015 compared with only $250 million for the same period the year before. The Council Of Small Business Of Australia, which called for the extension in its pre-Budget submission to the Government said providing additional cash flow to small business and opportunities for investment and innovation were important to stimulating economic activity and creating jobs in Australia.
Planet Blue Action Sports Consultancy also supports the Government’s scheme, which can enable new small business retail operators the opportunity to purchase new stock display fittings, lighting, storage upgrades and other much needed merchandise displays for a new store from the government $20,000 tax concession grant.
In closing, good luck to Clearwater Surfboards who have just opened a new retail store in Western Australia not far from Surf Beach in Secret Harbour, Rockingham. The new Clearwater Surf Store has over 200 square metres of cool fashion and surfboards to choose from. So if you have just finished a surf in the area, then drop in and check out the new store located at Secret Harbour Shopping Centre in Rockingham.