ACCI’s Back Australian Business campaign is pushing for Australia’s next Federal Government to extend the temporary full expending measure to reinvigorate investment in Australian businesses.
Due to the pandemic, business investment has been down the last few years. The Federal Government need to encourage investment to help boost productivity and the economy by extending the temporary full expensing (TFE) measure.
Leading up to the pandemic, business investment in depreciable assets like machinery and equipment was already weak. This was exacerbated by COVID, which led to the introduction of the government initiative, TFE. Designed to help most businesses claim a deduction for the business portion of the cost of an eligible asset. TFE has helped reinvigorate investment in Aussie businesses when we needed it most.
ACCI’s Back Australian Business campaign is pushing for Australia’s next Federal Government to extend the TFE. It is set to expire on 30 June 2023 though, with no proposed alternative to replace it. This would be a huge blow for businesses just as the economy is emerging from COVID-19 disruptions. To continue stimulating investment, TFE needs to be extended at least until June 2025 so businesses can keep growing and raising productivity.
For more information on the pillars of the ACCI Back Australian Business campaign, please visit www.backaustralianbusiness.com.au.
