The Federal budget for 2019-2020 has promised to deliver future tax cuts for thousands of small and medium Australian businesses.
According to Treasurer Josh Frydenberg, a re-elected Federal government will increase the instant asset write-off threshold from $25,000 per asset to $30,000.
The fiscally-friendly implementations are designed to help business owners to reinvest in their business, purchase new equipment, employ more workers and grow.
The write-off can be claimed every time a business purchases an eligible asset worth less than $30,000.
Medium‑sized businesses with an annual turnover of less than $50 million will also be eligible to claim the benefit under the proposed tax breaks. The previous cut-off threshold was set at a $10 million limit.
Approximately 22,000 additional businesses employing 1.7 million workers will now be eligible to access the instant asset write-off.
The company tax rate is also slated for a reduction, cutting it to 25 per cent for small and medium‑sized companies with an annual turnover of less than $50 million, while the unincorporated small business tax discount rate shall be increased.
Businesses are also being offered larger cash payments for taking on apprentices where there are skills shortage, the centrepiece of a $525 million skills package.
To find out more information and tax resources, click here.