The Australian Parliament Houses have approved the latest federal government’s bill on making amendments on the existing Treasury Laws. Earlier, this month the ruling Federal government in Australia had increased the Instant Asset Write-Off for the Small Business Entities by making certain amendments in the existing Coalition government’s Treasury Laws.
Now, the amendment bills which points the lift of SMEs instant asset write-off to $30,000 has been approved by the big houses of Australia within 48 hours which is something to celebrate for SMEs owners.
While addressing the current financial year budget session, the Treasurer Josh Frydenberg announced the amendment bill that includes the details of lifting the threshold instant asset write-off from $25,000 to $30,000. He also added the note that points the broadening the criteria for SMEs. Earlier SMEs should be within the limit of annual turnover $10 million now it was increased to $50 million.
On his budget addressing the treasurer elaborated the beneficial reforms for the SMEs communities and describes as “The Engine Room of the Economy”. He also said as “The increase in asset write-off will allow a café to get a new fridge and a plumber to buy new tools likewise currently there are more than 350,000 businesses have taken up the instant asset write-off. And now, even more, will have the chance to do so”
The complication on instant asset write-off
Several tax experts have reported as this new SMSF compliance like threshold lift and extending the criteria for availing concession will add more complications for the small business owners. They also mentioned as this new amendment will lead businesses to a situation where the owners need to wrangle with 3 different thresholds for the current financial year in order to avail the benefits.
To get clear about the new SMSF compliance and to avail benefits, it’s better to get in touch with the reliable SMSF Outsourcing service provider who will be well aware of handling these new SMSF compliances.