Small businesses on the Mornington Peninsula and Bass Coast are set to benefit from additional opportunities to invest in their business and replace or upgrade their assets, with legislation to extend the $20,000 instant asset write-off passing the Parliament.
The legislation delivers on the Coalition Government’s 2018-19 Budget announcement to extend the $20,000 write-off for a further 12 months to 30 June 2019.
Across Australia, there are more than three million small businesses with an annual turnover of less than $10 million that are eligible to access the write-off.
“Whether you’re a gardener purchasing a ride-on lawn mower, a café owner purchasing an industrial dishwasher or a courier purchasing a vehicle, I encourage small businesses in Flinders to take advantage of the $20,000 instant asset write-off – if they’re not already,” Minister Hunt said.
“By growing the ability of local small businesses like Burmak to invest, we grow their ability to produce for their community and employ more locals.”
Burmak Cabinets in Hastings used the instant asset write-off to install solar panels on their factory, drastically reducing their power prices.
Burmak Director Simon Burt said this investment is already proving beneficial for the company.
“These panels have cut our electricity bill from $3500 to at times as low as $800,” Mr Burt said.
“This saving on electricity costs may not sound like huge amount of money, but that helps the businesses cash flow significantly.”
“More of these savings have the ability to completely change the landscape of local business.”
In the 2015-16 Budget, the Coalition Government increased the immediate deductibility threshold from $1,000 to $20,000.
Backing small business – the engine room of our economy – is part of the Coalition Government’s plan for a stronger economy and more jobs.