The National Retail Association (NRA) has welcomed the increased tax deduction for business assets, saying it would make life easier for business owners and boost purchasing activity.
Prime Minister Scott Morrison announced an immediate increase in the level of the instant asset write-off, from $20,000 to $25,000, as well as extending the scheme to June 2020.
As Australia’s largest and most diverse retail industry association, the NRA believes the policy change will help retail small business in two ways.
“Firstly, we expect this will encourage many business owners to make purchasing decisions that might otherwise have remained in the planning phase until next financial year,” NRA CEO Dominique Lamb said.
“We know from experience that as we move towards a federal election that discretionary retail activity can slow down, so we welcome any measure that will support small businesses and help them keep their employees in work.
“We also know that may retail businesses have taken advantage of the $20,000 instant write-off for business assets. We believe this increase will allow them to invest further in their businesses and support their staff with new systems and equipment.
“This will be a very welcome boost to retail coffers in coming months, and we encourage both sides of politics to lock in behind the increased limit and timeframe.”