A key feature of the budget are the Business tax incentives to support Australia’s economic recovery. These incentives are aimed at helping businesses invest and create more jobs. Businesses will now be able to temporarily fully write-off eligible depreciable assets up to $150,000 for all businesses in Australia with a turnover of up to $5 billion a year. From next year, this instant asset-write off also includes
businesses that turn over less than $10 million.
The eligible businesses can instantly write-off multiple assets, each costing less than $150,000 that are purchased by December 31, 2020. This will help in writing off multiple assets as the threshold applies on a per asset basis.
This move is expected to benefit around 3.5 million businesses, which is roughly 99 percent of Australian enterprises.
Another tax incentive is the temporary loss carry-back. Under this benefit, businesses with a turnover of up to $5 billion will be able to temporarily offset tax losses against profits and tax paid during or after 2018-19.
These two measures combined are expected to bring about $31.6 billion in tax relief, which will further pump in $200 billion worth of investment into the Australian economy.