Act now before government scraps tax breaks

From my conversations with small businesses in our community I know how tight things can get when it comes time to invest in a new piece of equipment.

That’s why I will soon be writing to small businesses in Rankin who may be able to benefit from the instant tax write-off before it is scrapped by the Abbott Government in January.

My advice will be for small business owners and sole traders to talk to their accountants to see if they can benefit from the instant tax write-off that Labor introduced, before time runs out.

The instant tax write-off for assets and motor vehicles was part of the 2012 budget to help small businesses manage their cash flow. While these measures have been in place for over a year, many small businesses remain unaware that they can access these generous tax breaks.

These laws allow for the immediate write-off of an asset costing less than $6,500 or an immediate deduction of $5,000 for the purchase of a motor vehicle costing more than $6,500.

For small businesses in our local area, these write-offs have let them save money while buying the essentials – from cars and vans to dishwashers and office furniture.

Unfortunately for our community, one of Mr Abbott’s first acts was to cut these small business assistance schemes, with the motor vehicle tax write-off scrapped and the asset write-off threshold lowered to $1,000. These proposed cuts are due to take effect from January 1 next year.

These cuts will make it harder for small businesses to manage their finances each year and may mean that businesses will miss out on the chance to update their equipment. If local businesses are thinking about buying a car or other items for the office, my advice is to get in now.

First published on the 29th of November in the Logan Reporter.

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