Nearly 10,000 small businesses in Wollongong will benefit from tax law changes that will improve cash flow, reduce red tape and simplify depreciation rules, Federal Member for Cunningham, Sharon Bird, said this afternoon.
“The Assistant Treasurer and Minister for Small Business today released public consultation exposure draft legislation outlining the Commonwealth Government’s amendments to tax laws.
“The consultation period is open until Wednesday, 28 September, and I encourage individual small businesses, the Illawarra Business Chamber and Australian Industry Group to participate in these consultations”, she said.
The Commonwealth Government’s package will allow for small businesses to:
- Immediately write-off assets valued at under $6500, such as photocopiers, laptops, fridges and desks;
- Immediately write-off up to $5000 for motor vehicles acquired from 2012-13 income year, with the remainder to be written-off at a rate of 15 percent in the first year and 30 percent in the following year, and
- Write-off of other assets in a single depreciation pool at a rate of 30 percent.
“These changes which are effective from the 2012-13 income year will help improve cash flow for small businesses, reduce red tape and simplify depreciation rules for assets.
“These changes will help small businesses in Wollongong plan for the purchase of assets to help their business grow and expand”, Ms Bird said.