Small business tax cut and $20,000 asset write-off passes Senate; Metcash sells automotive division for $275 million: Midday Roundup

Small business tax cut and $20,000 asset write-off passes Senate; Metcash sells automotive division for $275 million: Midday Roundup

The small business community can face the new financial year with increased certainty, with legislation for the government’s small business tax cut and $20,000 asset write-off scheme passing through the Senate this morning.

Small Business Minister Bruce Billson took to Twitter to announce the Senate’s approval of the bills, which were approved by the House of Representatives on June 4.

“Abbott Govt’s historic $20 k instant asset write off measure passes the @AusSenate all systems GO!” Billson tweeted.

“@AusSenate passes Abbott Gov #smallbis tax cut to lowest levels since 1967 #energiseenterprise.”

Metcash sells automotive division for $275 million 

Metcash has sold its automotive arm, which includes brands such as AutoBarn and Midas, for $275 million to Victorian-based auto parts company Burson Group.

Burson will acquire 100% of Metcash Automotive Holdings, which wholesales and distributes automotive parts through a network of 416 national stores and outlets.

Metcash also revealed a $384.2 million full-year loss as a part of its shareholder announcement this morning, including massive write-downs on its core food and grocery division.

The results come as Metcash’s independent grocery stores are said to be losing the supermarket war against Coles, Woolworths and global discount chain Aldi.

Shares down on open

Aussie shares have started the week in the red, taking a negative leave from last week’s close on Wall Street.

Ric Spooner, chief market analyst at CMC Markets, said in a statement local investors will likely take a “quiet and cautious” approach to news that talks between Greece and the European Commission broke down over the weekend.

“While markets recognise there is room for caution, there are risks in both directions when it comes to Greece,” Spooner said.

“If a solution is negotiated this week, there is room for a ‘risk on’ buying response by the share market. With this being the case, markets may be relatively quiet with investors taking a wait and see mode on Greece, prepared to react if required when the outcome is finally known.”

The S&P/ASX 200 benchmark was down 30.9 points to 5514.4 points at 12.00pm AEST. On Friday, the Dow Jones closed 140.53 points lower, down 0.78% to 17898.8 points.

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