The Morrison Government has increased the Instant Asset Write-Off threshold in a move welcomed by the Pharmacy Guild
The Federal Government announced that it has raised the threshold for the write-off arrangement from $20,000 to $25,000, allowing a write-off for each asset valued at under $25,000.
The raised threshold follows the extension of the program for the 2019-20 year.
The National President of the Pharmacy Guild of Australia, George Tambassis, said the move would result in improvements to cash flow which would help community pharmacies reinvest in their business and replace or upgrade their assets.
Mr Tambassis said the lifting of the threshold and the extension of the program would be a boost for community pharmacies.
“Community pharmacies are small businesses and this announcement will have a positive impact on cash flow while also simplifying record keeping,” he said.
“With the threshold being raised to $25,000 immediately there will be rapid and tangible benefits to Australia’s 5,700 community pharmacies.
“This is important to ensure a sustainable and viable community pharmacy sector that delivers increased health services to communities across the country.”
Federal Treasurer Josh Frydenberg tweeted that more than 300,000 small businesses used the initiative in its first year.
The increased threshold is “great news for over 3M small businesses!” he wrote.