Australian business owners are sighing in relief and rather overwhelmed by the $30,000 instant asset write-off for small and medium enterprises. The Senate and the House of Representatives both passed the Treasure Laws Amendment that allows for an increase in instant asset write-off. This proposal was announced during the 2019-2029 budget.
The bill increases instant asset write-off, which was $25,000 to $30,000. At the same time it increased the eligibility criteria of small or medium enterprises that qualified at $10 million to $50 million per annum.
Stimulating enterprise growth
The small business community is the engine room of the economy and the country’s treasurer emphasises that they should be supported. The increased business write-off offers the ideal opportunity to purchase assets for the business.
In this instance, a courier can purchase a new van, a plumber can purchase new tools, a café owner can get a new grill or fridge, but moreover is the importance of investing in renewable energy by installing Solar Panels. By April 5, 2019, over 350,000 small businesses have already taken advantage of the instant asset write-off. It goes without saying that all small and medium enterprises will take this opportunity.
Clean energy for environmental protection
The Australian government is particularly interested in supporting the continued use and installation of Solar PV and batteries. It would like to see itself remain in its seat as having the highest uptake of solar worldwide. As of the end of December 2018, over two million rooftop solar systems have been installed across the country. It is a major step in the positive transitioning away from fossil fuels and offers the potential of off-grid energy self-sufficiency.
As a major long-term investment, all Australian businesses are urged to join the embrace of 100% renewable energy. Nearly three-quarters of global companies that committed to sourcing 100% of the entire electricity demand through renewables have operations in Australia. It includes Carlton United Breweries, Fujitsu and Mars, but all Australian industries are urged to follow suit.
