Millions of Australian businesses have been given until 2021 to buy equipment and make investments under the federal government’s ramped-up tax write-off scheme, in a major extension to one of the first stimulus measures introduced in March.
The six-month extension to the expanded instant asset write-off scheme is forecast to cost the budget $300 million over the forward estimates. It allows businesses with annual turnover of up to $500 million to write off $150,000 in new and used equipment, vehicles and office fit-outs.
Before the government’s first $8 billion coronavirus stimulus package, businesses were limited to a $30,000 write-off threshold but the sum was dramatically increased in March to help mitigate impacts of the pandemic.
However, some businesses closed temporarily later in the month due to the effects on social distancing. Many of these restrictions are being eased across the country and the new measures are intended to ramp up delayed investment plans.