From tonight, Australian small businesses will be able to write off new asset purchases up to a value of $20,000 against tax, as long as turnover is lower than $20 million a year.
It’s a $1.75 billion budget provision intended to get businesses spending up.
Here’s the problem:
— Broken (@kev_martin) May 12, 2015
All over the country there are small business owners thinking about what they could buy, up to a value of $20,000, for “the business”. New laptops, a decent second-hand car for “sales expansion”, a new set of Bose speakers for “entertainment” – they’ll all qualify.
It is entirely common practice for small business owners to put certain purchases through their businesses for the tax breaks. Without doubt it will be rorted.
But it will also get tills ringing at businesses all over the country. And retail, as a sector, is the biggest employer in the country.
More Budget Coverage:
- AT A GLANCE: All the big items in last night’s 2015 federal budget
- Here are the key budget numbers you’re looking for
- ANALYST: The budget ‘hung the economy out to dry’ and more rate cuts are needed
- This debt chart shows the Abbott government squibbed the tough decisions in the budget
- 31 things you need to know about the federal budget
- Here’s what Australia’s startups think of the stimulus plans in the federal budget
- MYOB’s CEO says the $20K startup gift will be ‘phenomenal’ for Aussies
- All the government programs that have been cut in Australia’s federal budget