- This is the latest in a series of instant asset write-offs.
- The measure aims to assist cash flow and bring forward new investment to support the economic recovery.
- Businesses that have acquired assets eligible for the pre-existing enhanced $150,000 instant asset write-off will have an extra six months, until 30 June 2021, to first use or install those assets.
The Treasurer told Parliament that 8 out of every 10 jobs in Australia were in the private sector.
“It is the engine of the Australian economy. It needs a kickstart,” he said.
He said 99% of businesses will be able to write off the full value of any eligible asset they purchase for their business.
“It is a game changer. It will unlock investment. It will dramatically expand the productive capacity of the nation and create tens of thousands of jobs.
“A trucking company will be able to upgrade its fleet, a farmer will be able to purchase a new harvester and a food manufacturing business will be able to expand its production line.”
The question is: how confident will businesses be to spend given continuing uncertainty about the pandemic and future prospects for their sector and the economy overall.
‘The more generous write-off isn’t just a tax focused discussion with clients. It needs to be discussed in the context of business strategy, cash flow and financing.’ –
Budget Paper No 2Read more
Australian Federal Budget 2020-21
View the Australian Federal Budget overview, commentary, opinions and media releases brought down on 6 October 2020.Read more