15 June 2020 · MGM News
Small Business Initiatives
What government initiatives can help my business?
While it’s a challenging time for many Australian businesses, the government has introduced and expanded a number of initiatives to help businesses like yours keep moving.
We understand that these changes can be tricky to navigate, especially when things are constantly changing, so we’ve put together this handy guide that breaks down the initiatives currently available, and time is running out to take advantage as some expire at the end of the financial year.
Here are the latest initiatives that could be of use to you.
Instant Asset Write-Off Increased To $150,000
The instant asset write-off threshold has been increased from $30,000 to $150,000, and has been expanded to include businesses with a turnover of less than $500 million (up from $50 million).
This allows you to immediately deduct purchases of eligible assets, at a much greater amount than before. There is also no quota to the number of assets you can deduct, so you can immediately write off multiple assets if you require.
That means if your business is in a position to buy a new car, van or ute, now is the time to act, as you need to purchase the asset before 30 June 2020.
It’s important to note that full benefits cannot be claimed if the vehicle is for both business and personal use.
Find more information on eligibility, timing, how to apply and more.
Cash Flow Boost For Employers
The federal government is currently providing payments of up to $100,000 to provide cash flow support for eligible small and medium sized businesses. This is an increase from the previous amount of $25,000.
For more information on eligibility, timing, how to apply and more click below
Accelerated depreciation deductions via the Backing Business Investment (BBI) initiative is a 15-month incentive to support business investment over the short term by accelerating depreciation deductions.
If your business has a turnover of less than $500 million, you can claim a deduction of 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
For more information on eligibility, timing, how to apply and more click below.
State and Territory Initiatives
There are also specific State and Territory initiatives in place. Find out more here
* Important things to consider
We strongly recommend you seek independent financial advice if you need guidance on any of these measures, and refer to https://www.ato.gov.au/ and the above Government websites for further information.