Financial advice and planning businesses are set to receive a boost with the extension of the Federal Government's $20,000 instant asset write off legislation passing through the Senate.
Part of the Government's economic agenda to introduce tax cuts to business, the instant asset write-off helps small and medium businesses reinvest in their business by replacing or upgrading assets.
The approval guarantees small business' accessibility to the scheme for another 12 months to 30 June 2019.
According to Treasurer Josh Frydenberg and Small Business Minister Michaelia Cash, around 3.3 million small businesses can access the asset write-off, including financial advice and planning businesses with annual turnovers less than $10 million.
In a release, the Government said the instant asset write-off was a feature of its wider agenda for small and medium businesses. This includes cutting the company tax rate for businesses with an annual turnover of less than $50 million from 30% to 25%, the abolishment of $5.9 billion in red tape, and the introduction of a simplified business activity statement.
The Government recently clarified the responsibilities of Prime Minister Scott Morrison's new ministry, confirming several changes for financial services, after Kelly O'Dwyer took on the jobs, industrial relations and women portfolios.
As Australia's new Treasurer, Frydenberg now assumes responsibility for ASIC, APRA and the ACCC, and will ultimately be responsible for the Government's response to the Royal Commission. His remit will extend to taxation and superannuation policy, budget, economic and fiscal policy, and major foreign investment decisions.
Newly anointed Assistant Treasurer Stuart Robert will take care of the day-to-day management of superannuation, competition and consumer policy, including fintech and crowdsource equity funding.