Budget 2021: Growth dividend from $20.7bn ’tradie’ tax relief

The Australian on May 11, 2021

The federal government is expecting an attractive growth and jobs dividend from a $20.7bn investment in tax relief for small to mid-sized businesses which has been extended for two years, most of it directed at boosting last year’s popular full expensing and loss carry-back provisions.

Treasurer Josh Frydenberg said the government’s investment incentives were “filling the order books of the nation”.

“Over 99 per cent of businesses, employing over 11 million workers, can write off the full value of any eligible asset they purchase,” the Treasurer said in his budget speech on Tuesday.

“This has seen their spending on machinery and equipment increase at the fastest rate in nearly seven years.

“We again go further, announcing the extension of these measures for a further year until June 30, 2023, so a tradie can buy a new ute, a farmer a new harvester and a manufacturer expand their production line.”

Under the scheme, businesses with less than $5bn in annual turnover will be able to deduct the full cost of eligible assets, including the cost of improving existing assets, between October 2020 and end-June 2023. READ MORE: https://lnkd.in/gaBXar5