By CASEY NEILL
DON’T spend cash just to get a tax break.
This was the advice from Cranbourne Chamber of Commerce president Mark Carusi at a networking event at the Balla Balla Community Centre in Cranbourne East on 3 June.
The accountant from MPC Consolidated delivered a post-Federal Budget small business and economic update.
“It’s basically an about-face to what was delivered last year,” Mr Carusi said.
He said the government had moved from austerity mode to stimulus mode.
“They’re trying to stimulate the economy through small business,” he said.
Businesses with a $2 million turnover or less will be able to immediately deduct assets valued at up to $20,000.
Currently, the immediate write-off cap is $1000.
The move would apply for assets acquired and installed and ready for use between 7.30pm on 12 May this year and 30 June 2017.
Mr Carusi said the problem was the measure hadn’t yet passed the Senate, which was due to sit again on 15 June.
“It’s not law,” he said.
“My advice is, if you’ve got money, have a good think about what you’re going to spend it on.
“There’s a chance it might not get through or it might be reduced by half – I don’t know.”
He said the Australian Tax Office (ATO) was also still formulating what items would and wouldn’t be covered under the new measures.
“If it’s a sound investment, I’d say plan for it and go out and buy those items,” he said.
“If you’re doing it just for a tax break, don’t.
“Cash is king. Pay your bills.
“Interest rates are low. It’s a good time to pay off debt.
“It’s great if you’ve got cash flow and a real reason to implement these strategies.”
