Local MP Darren Chester says the extension of the Federal Government’s instant asset write-off scheme will improve cash flow for local businesses as they get back on their feet after drought, bushfire and the coronavirus.
Mr Chester said the extension of the scheme to the end of this year would be welcome news to companies planning a significant purchase or investment.
“Businesses, including primary producers, in Gippsland have endured a terrible run of events. Fortunately, many can now see better days ahead,” Mr Chester said.
“The extension of the $150,000 instant asset write-off until December 31 will give many the confidence they need to press ahead with this expenditure as the economy re-opens.
“Businesses across Gippsland have faced an incredibly challenging period. This extra time is one way the Federal Government is supporting our local economy to recover faster and build back better.”
The scheme will support more than 3.5 million Australian businesses with annual turnover of less than $500 million and help to improve cash flow by bringing forward tax deductions for eligible purchases.
The $150,000 threshold applies on a per asset basis, so eligible enterprises can immediately write-off multiple assets provided each costs less than $150,000.
Businesses now also have until the end of the year to acquire and install these assets, which may be new or secondhand.
Mr Chester said purchases could include a truck for a delivery business or a tractor for a farming business.
“I am also encouraging these businesses to shop locally and support local jobs by making their purchase in Gippsland, wherever possible. That way our economy will see a double benefit from the instant asset write-off scheme,” Mr Chester said.