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.
Like to know more?
There is a Support Line at 1800 777 275, which operates between 8am and 8pm weekdays, or you can send an email, any time, to firstname.lastname@example.org.
Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
Monday May 20
The Dow Jones Index rose 121.18 points Friday,New York time) to 15,354.40
Prime Minister Julia Gillard has received a boost in the latest newspaper polls as she continues her push to get states and territories to sign up to the Federal Government’s education reforms. Fairfax’s latest Nielsen poll says support for Ms Gillard as preferred prime minister has increased four points to 46 per cent, leaving her level with Opposition Leader Tony Abbott, whose support dipped four points.
- Sharon Coulton on Proposed family tax benefit scrapped
- Pete on Rudd government had entered “paralysis:” Gillard
- Liam Knuj on The Prime Minister, Julia Gillard’s, New Year’s Message
- Change is for the better,change is where your heart grows stronger on Family Assistance boost
- Harry on The Prime Minister, Julia Gillard’s, New Year’s Message
|Aud To Usd||0.9749||N/A||N/A|
|Bhp Blt Fpo||34.880||+0.470||+1.37%|
|Rio Tinto Fpo||55.710||+0.420||+0.76%|
|Origin Ene Fpo||13.135||+0.205||+1.59%|
|Anz Bank Fpo||30.560||+0.300||+0.99%|
The News This Week
- Where’s Gonski now?
- Super:the political questions
- Abbott casts a wide net
- Tony Abbott offers “Real Solutions”
- Disability bill passes Parliament
- Investment scam closed
- We’re cashed up and confident, but not buying cars
- Tony Abbott talks of tax reform
- PM weeps as she introduces disability levy bill
- A “soft economy” budget:NAB
- Swan puts profit shifters in his sights
- The budget. How they see it
- A belt tightening budget. Where’s the balance?
- The budget at a glance
- Airlines (60)
- Banking (2150)
- Business (2256)
- Communications (49)
- crime (12)
- Disaster (103)
- Economics (2220)
- Environment (100)
- Financial advice (2012)
- Health (81)
- Housing (620)
- Inflation (507)
- Insurance (90)
- Investment (1869)
- Markets (1632)
- Media (117)
- medical (20)
- mining (164)
- pay (67)
- Politics (2199)
- population (71)
- Regulation (914)
- retirement (64)
- Rural australia (100)
- Security (19)
- Social security (229)
- Superannuation (211)
- Tax (348)
- The latest (4)
- Trade (537)
- Uncategorized (334)