$20,000 Asset Write-off Extended
The $20,000 instant asset write-off for small business has been extended for another 12 months till the 30 June 2019.
Small businesses will be able to instantly deduct purchases of eligible assets up to the value of $20,000 if used or installed by 30 June 2019. The small business simplified depreciation pool can be deducted immediately if the balance is less than $20,000 during this period.
$10,000 Cash Payment Limit
As of July 2019, the Government will introduce a $10,000 limit for cash payments made to businesses for goods and services. This will restrict transactions of $10,000+ from being cash payments and will require large transactions to be made through an electronic payments system or cheque. This measure will minimise tax avoidance and money laundering from criminal activity.
No ABN, No Withholding, No Deduction
The Government will also remove deductions for payments made by businesses to contractors where the contractor does not provide an ABN and the business doe snot withhold any amount of PAYG despite the withholding requirements applying.