by Alan Thornhill
The Federal government says more than 2.7 million small businesses are now getting tax relief.
That’s because they have “begun to share the benefits of the mining boom.”
The Treasurer, Wayne Swan, says: “The Gillard Government is using the Minerals Resource Rent Tax to deliver tax breaks for small businesses through an increase to the instant asset write-off and a new loss carry-back initiative.”
But it doesn’t end there.
The tax threshold is also being raised.
“The Government is also tripling the tax-free threshold, from $6,000 to $18,200 ,” Mr Swan said.
He said this would help 1.4 million small business owners who are sole traders or hold an interest in a partnership or operate through a trust.
His statement, issued jointly with two other Labor MPs, coincides with the first week of the new reforms.
It contains little, if anything, that is new, but might be a useful reminder.
Mr Swan said: “from this week, the Government’s new $6500 Instant Asset Write-off will help Australia’s 2.7 million small businesses to invest and improve their cash flows.
“Small businesses are now able to instantly write off each and every asset they purchase costing less than $6,500, rather than depreciating them over time,” the Treasurer added.
“In addition, small businesses will be able to claim up to $5,000 as an immediate deduction for new or used motor vehicles acquired during the 2012-13 income year.
“The remainder of the motor vehicle’s cost will be pooled in the new single general small business pool.
“ This recognises that for many small businesses their biggest asset is a ute, car or van,” Mr Swan said.
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Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
Monday December 9
Thai Prime Minister Yingluck Shinawatra says she will dissolve parliament and call an election, after sustained protests in the capital, Bangkok.
Parliament has passed laws to abolish the debt ceiling just three days before the Government said the nation’s books would hit the cap of $300 billion.
The Dow Jones index rose 198.69 points (Friday, New York time) to 16,020.20
Tony Abbott’s bills to repeal the carbon tax face defeat in the Senate this week, raising the spectre of a double dissolution
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