Salons earning up to $500 million per year have been given an additional six months to write off newly purchased assets worth up to $150,000, it has been announced.
While the government announced in March that it would be allocating $700 million to increase the instant asset write-off from $30,000 to $150,000, numerous business groups called for its extension.
In response, Treasurer Josh Frydenberg has confirmed the scheme will run until the end off the year, in a bid to encourage economic growth.
“What we want to do now, at a time when people are getting back to work and maybe demand is a bit slower than it was pre-crisis, is to encourage businesses to go out and to grow and to invest and to hire, and this is one of the measures to do just that,” Mr Frydenberg said, adding that, “Extending it to the end of this calendar year will be seen as a very welcome move by businesses right across the country.”
The Treasurer said that while small businesses were no-doubt doing it tough, it was imperative that this time be spent planning ahead.
“Businesses are not just looking at today, they’re looking at tomorrow and they’re looking at the restrictions being eased and people getting back to work and their normal lives,” he said.
“This initiative has a view of the future and it’s encouraging businesses to take that next step, to buy the equipment or tools that they need and to help to help us become more productive as a nation.”
Full details on how salons can claim the instant asset write-off and take advantage of its extension can be found on the ATO’s website.
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