Treasurer provides plenty of incentives for businesses to start spending.

 

As an integral part of the wider economy, Australia’s $12 billion office and workplace supplies industry is a clear winner in the Federal Government’s COVID-busting budget.

 

With businesses of all shapes and sizes receiving a raft of financial incentives, the government is hoping to stimulate $200 billion in business investment in new machinery and equipment, boost the economy by $12.5 billion over the next two years and create an extra 50,000 jobs.

 

From 6 October to 30 June, 2022, businesses with a turnover of up to $5 billion will be able to deduct the full cost of an eligible asset in the first year it is used or installed.

 

Previously, a portion would have been tax deductable in the first year and the rest would have been depreciated over future years.

 

To encourage businesses to bring spending forward and invest more now, the full amount of an asset can now be claimed as a tax deduction up front, reducing the amount of tax a business will pay.

 

The government is also extending the instant asset write-off, which had already been expanded as part of its response to the pandemic.

 

Businesses with turnover of up to $500 million can instantly write-off multiple assets worth up to $150,000 each.

 

The Business Council of Australia (BCA) agreed with Federal Treasurer Josh Frydenburg’s assessment that this year’s budget is a "game changer” for business.

 

"This investment incentive will create new purchase orders and jobs by encouraging businesses to immediately expand, innovate, update technology and buy new plant and equipment," BCA chief executive Jennifer Westacott said.

 

PHOTO CREDIT: MYOB