In a speech on 29 January 2019, the Prime Minister announced that the Government will increase the instant asset write-off already available for small businesses from $20,000 to $25,000. Mr Morrison also said that the instant write-off will be extended by 12 months to 30 June 2020. (It was due to revert to $1,000 on 1 July 2019.)
The measure is expected to benefit more than 3 million eligible small businesses with a turnover of up to $10 million a year to access the expanded accelerated depreciation rules for assets costing less than $25,000. This means that, from 29 January 2019, small businesses can instantly deduct each and every asset under $25,000, according to Mr Morrison.
The increased threshold will be effective from 29 January 2019. The Government said it will introduce legislation when Parliament resumes from 12 February 2019.
Two landmark cases before the High Court highlighted the problem of identifying whether a worker is an independent contractor or employee for tax and superannuation purposes. Many business owners assume that they will not be responsible for PAYG withholding,...