On Thursday 15 June, The Senate passed legislation that will allow 3.2 million Australian small businesses to continue to purchase equipment up to $20,000 and write it off immediately.

After hearing from small businesses around the country, senators decided that the extension would improve efficiency and help these enterprises secure themselves within the local community by redefining ‘small business’ in Australia.

Small Business Minister Michael McCormack said recent tax cuts for small business – which delivered a 27.5 per cent tax rate – also redefined ‘small business’, meaning more Australian businesses are now eligible for the instant asset write-off.

“In cutting the small business tax rate to its lowest level in many, many decades we also redefined ‘small business’ to a $10 million annual turnover, up from $2 million,” Mr. McCormack said.

“This means thousands of more small businesses are now eligible for the write-off, as well as paying less tax.”

Click here for the full release

Image credit: Micheal McCormack