Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

IPA welcomes instant write-off extension

IPA/policy/regulation/andrew-conway/

image
image image
expand image

The Institute of Public Accounts (IPA) has commended the Government’s decision to extend the instant asset write-off for small businesses to 2020 and increase the limit from $20,000 to $25,000, but argues it should be a permanent feature of the small business tax regime rather than a ‘maybe’ come Federal Budget time.

IPA chief executive officer, Andrew Conway, said the extension of the initiative through to 2020 would give reassurance to small businesses looking to invest in their business for future growth.

“If small businesses can invest in their business, whether it be plant and equipment, vehicles or technology or anything else to make them more productive, that has a direct, positive impact on the economy, including the propensity to expand and employee more people,” he said.

And, while last year the Australian Small Business and Family Enterprise Ombudsman recommended the current instant asset write-off limit of $20,000 actually be substantially increased to $100,000, the IPA showed its support for any increase in the threshold.

“When it comes to small business, cash-flow is king and ensuring this policy is instilled into the system provides some certainty,” said Conway.

The CEO also took the opportunity to warn small businesses not to construe the incentive behind the asset write-off as a tax relief, and said small business owners should seek advice before undertaking any capital investment.

“This measure merely allows them to accelerate the write-off of the purchases and assets that helps with cash flow, but they must remember it’s still coming out of their pockets.  Regardless of the threshold amount, they have to have access to the funds.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 weeks 5 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

3 weeks 5 days ago

So we are now underwriting criminal scams?...

6 months 3 weeks ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 4 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

6 days 16 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND