Morrison Government Announced 12 March 2020
FACT SHEET ECONOMIC RESPONSE TO THE CORONAVIRUS for Australian Businesses
Morrison has also pledged to significantly extend the instant asset write-off for small and medium businesses, in a bid to encourage investment.
Currently, the tax write-off is available for businesses with a turnover of up to $50 million, for purchases of up to $30,000.
That will be extended to include companies with turnover of up to $500 million, and purchases of up to $150,000.
The extension will apply until June 30 2020.
The measure is expected to cost about $700 million, but in the Nine News interview, Morrison said it’s intended to help the economy recover in the future.
“That’s about putting the investment into the economy, so on the other side, the economy bounces back,” he said.
In addition, the government is accelerating depreciation deductions, through a limited 15-month investment incentive.
Until June 30 2021, businesses with a turnover of less than $500 million will be able to deduct an additional 50% of an asset cost in the year the asset was purchased.
Both these measures start today, and are expected to help 3.5 million businesses.
“The measures are designed to support business sticking with investment they had planned, and encouraging them to bring investment forward to support economic growth over the short term,” the release says.
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