Zali Steggall (Warringah, Independent) Share this | Hansard source

by leave—I move amendments (1) to (19), as circulated in my name, together:

(1) Schedule 1, heading, page 4 (line 1), omit "$20,000", substitute "$50,000".

(2) Schedule 1, item 1, page 4 (line 6), omit "30 June 2024", substitute "30 June 2025".

(3) Schedule 1, item 2, page 4 (line 9), omit "30 June 2024", substitute "30 June 2025".

(4) Schedule 1, item 4, page 4 (line 15), omit "$20,000", substitute "$50,000".

(5) Schedule 1, item 4, page 4 (line 18), omit "30 June 2024", substitute "30 June 2025".

(6) Schedule 1, item 4, page 4 (line 21), omit "30 June 2024", substitute "30 June 2025".

(7) Schedule 1, item 5, page 4 (line 24), omit "$20,000", substitute "$50,000".

(8) Schedule 1, item 5, page 4 (line 27), omit "30 June 2024", substitute "30 June 2025".

(9) Schedule 1, item 6, page 5 (line 1), omit "$20,000", substitute "$50,000".

(10) Schedule 1, item 6, page 5 (line 4), omit "30 June 2024", substitute "30 June 2025".

(11) Schedule 1, page 5 (after line 4), after item 6, insert:

7 Review of instant asset write-off for small business entities

(1) The Minister must cause an independent review to be conducted of the operation of section 328-180 of the Income Tax (Transitional Provisions) Act 1997.

(2) Without limiting subitem (1), the review must consider how the operation of that section has helped small business entities.

(3) The persons undertaking the review must give the Minister a written report of the review by 30 June 2025.

(4) The Minister must cause a copy of the report of the review to be tabled in each House of the Parliament within 7 sitting days of that House after the report is given to the Minister.

(12) Schedule 2, item 1, page 6 (line 12), omit "$20,000", substitute "$50,000".

(13) Schedule 2, item 1, page 6 (line 14), omit "30 June 2024", substitute "30 June 2025".

(14) Schedule 2, item 1, page 7 (line 6), omit "1 July 2024", substitute "1 July 2025".

(15) Schedule 2, item 1, page 7 (line 11), omit "1 July 2024", substitute "1 July 2025".

(16) Schedule 2, item 1, page 7 (line 21), omit "30 June 2024", substitute "30 June 2025".

(17) Schedule 2, item 1, page 8 (line 28), omit "1 July 2024", substitute "1 July 2025".

(18) Schedule 2, item 1, page 9 (line 14), omit "30 June 2024", substitute "30 June 2025".

(19) Schedule 2, page 10 (after line 32), after item 1, insert:

2 Review of small business energy incentive

(1) The Minister must cause an independent review to be conducted of the operation of section 328-465 of the Income Tax (Transitional Provisions) Act 1997.

(2) Without limiting subitem (1), the review must consider how the operation of that section has helped small business entities.

(3) The persons undertaking the review must give the Minister a written report of the review by 30 June 2025.

(4) The Minister must cause a copy of the report of the review to be tabled in each House of the Parliament within 7 sitting days of that House after the report is given to the Minister.

These amendments are important to improve the intent and quality of this legislation. Don't get me wrong; it is a good bill. Two key provisions, nonetheless, require amendment. The instant asset write-off and the energy incentive will no doubt go a long way in assisting small businesses feeling the immense pressure of inflation, interest rates and less consumer spending, amongst other issues. Small businesses are the backbone of the Australian economy. They account for one-third of Australia's GDP and they need targeted support. At the moment small businesses are facing a perfect storm. At home, like all Australians, they are facing cost-of-living price increases and high mortgage rates, but they're also facing reduced revenue in their businesses as consumers spend less but energy prices increase. It's incredibly important that this bill actually achieve its intent by being well targeted. The amendments I am proposing, after consulting with the Manly Business Chamber, the Mosman Chamber of Commerce and the Warringah Chamber of Commerce in my electorate, and the Council of Small Business Organisations Australia—COSBOA—more broadly, give all small businesses certainty and bring forward cash, giving them the opportunity to get more back at tax filing time and allowing them more time to invest and reduce their energy bills.

In relation to the asset write-off, the amendments seek to increase the threshold for the instant asset write-off and the energy incentive bonus, taking the threshold from $20,000 to $50,000 respectively. Respectfully, for businesses to actually have the benefit of this provision, $20,000 is not sufficient. If we are talking about energy efficiency measures, whether it's rooftop solar, a battery, heat pumps and other efficiencies like LED lighting, these are all going to be much more significant than $20,000. If we genuinely want to support small businesses, it really needs to be increased to $50,000. Small businesses are struggling with their cashflows, and they really do need to do this. Nearly two-thirds of small-business owners recently cited concern about their ability to afford their energy bills. This incentive will go some way to help with that. I welcome the introduction of the energy incentive to support small businesses and to help them become energy independent and reduce their energy bills, but we need to make sure we're doing it in a meaningful way so that they can genuinely take advantage of this business policy.

The other issue, going to these amendments I seek to move, is this. Let's be realistic; we're already halfway through this financial year, and this is a measure to give small businesses the benefit of this asset write-off in the 2023-24 tax year. When I've raised this with COSBOA and small businesses they've asked me if I'm joking, in the sense that we're halfway through this financial year and we haven't even passed this legislation but, somehow, this is the period in which these businesses are supposed to be able to take advantage of this provision. Most of them aren't even aware this is coming. From a cashflow point of view, the government is proposing that sometime in the new year—so January or February—this legislation will have passed, businesses can become aware of it and they can then make the decision of whether or not they can take advantage of this asset write-off. But they have to do so within the next six months and find the cashflow to do it. I propose an amendment that I think is a very reasonable one to the government—that this measure be extended to the 2024-25 financial year so that businesses genuinely have an opportunity to plan for these measures and write off significant assets to improve the effectiveness and efficiency of their businesses.

If the government wants to be genuine in supporting small businesses in these kinds of measures and energy efficiencies, this amendment should be accepted, and this measure should be extended to the 2024-25 tax year. If not, it's really hard to understand where the motivation of the government is, other than window-dressing in this place for this measure and for this legislation, when so much of the time frame in which it will be available to the businesses has already passed. These are effective, simple amendments to genuinely help small businesses that are struggling and are calling on the government for greater assistance.

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