The $20,000 limit will cover each individual asset and is applicable to a wide range of items, including both new and pre-owned tools, technology, and equipment. Businesses will be able to fully claim these expenses at the conclusion of each financial year.
Treasurer Jim Chalmers emphasized that boosting productivity is a key focus of the upcoming budget announcement on Tuesday.
“We’re committed to saving small businesses significant amounts by making the instant asset write-off a permanent fixture in Tuesday’s Budget,” he stated.
“This initiative allows small businesses to immediately deduct any new equipment purchase up to $20,000. This includes anything from cutting-edge technology to essential tools and machinery.”
“By reducing bureaucratic hurdles and lowering expenses within our economy, this change will save small businesses an estimated 376,000 hours annually in compliance time,” he added.
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