Tony Pasin (Barker, Liberal Party, Shadow Assistant Minister for Infrastructure and Transport) Share this | Hansard source

by leave—At the request of the member for Hume, I move opposition amendments (1) through (5) together:

(1) Schedule 1, heading, page 4 (lines 1 and 2), omit "$20,000 instant asset write-off for small business entities", substitute "$30,000 instant asset write-off for small and medium business entities".

(2) Schedule 1, page 4 (after line 2), after item 2, insert:

2A After subsection 328-180(3)

Insert:

Extension to medium business entities

(3A) If you are an entity covered by subsection (3B) for an income year, then for the purposes of doing any of the following:

(a) deducting under subsection 328-180(1) of the Income Tax Assessment Act 1997 a proportion of the adjustable value of a depreciating asset for an income year in circumstances where paragraph (4)(d) of this section applies to you and the asset;

(b) deducting under subsection 328-180(2) of that Act a proportion of an amount included in the second element of the cost for an asset in circumstances where paragraph (5)(e) of this section applies to you and the amount;

(c) applying subsection 328-180(3) of that Act to you and an asset in circumstances where:

(i) paragraph (5)(e) of this section applies to you and an amount included in the second element of the asset's cost; and

(ii) paragraph (6)(e) of this section applies to you for a deduction for the asset for an income year;

Subdivision 328-D of the Income Tax Assessment Act 1997 applies to you for an income year and the asset as if you were a small business entity for the income year.

(3B) An entity is covered by this subsection for an income year if:

(a) the entity is not a small business entity for the income year; and

(b) the entity would be a small business entity for the income year if:

(i) each reference in Subdivision 328-C of the Income Tax Assessment Act 1997 (about what is a small business entity) to $10 million were instead a reference to $50 million; and

(ii) the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this subsection.

(3) Schedule 1, item 4, page 4 (line 15), omit "$20,000", substitute "$30,000".

(4) Schedule 1, item 5, page 4 (line 24), omit "$20,000", substitute "$30,000".

(5) Schedule 1, item 6, page 5 (line 1), omit "$20,000", substitute "$30,000".

The coalition amendments to this bill give effect to an extension of the instant asset write-off to 26,500 medium businesses and extend the value of assets eligible to $30,000.

This will simplify depreciation for Australia's 3.6 million small to medium businesses, cutting red tape while boosting investment in productive assets to improve their businesses, lower their costs and, in turn, lower prices. This will drive productivity at a time when it has experienced a historic collapse under Labor, which will drive economic growth to fund the essential services Australians deserve.

Following the temporary and targeted extensions during the COVID-19 pandemic, the government has ignored calls from business groups to lower the instant asset write-off threshold to levels not seen since the 2018-2019 financial year. The coalition amendments restore the instant asset write-off to the levels introduced in the 2019-2020 budget. This aligns the eligibility with that of the 25 per cent small-business company tax threshold and Labor's small-business energy incentive measure.

The coalition understands that, when business owners can keep more of their own money, they're able to invest back into the business, boost productivity, grow the economy and create new and, most importantly, local jobs. The coalition amendments mean: firstly, that 26,500 businesses with aggregate turnover of up to $50 million will be eligible to use the instant asset write-off; secondly, that the asset threshold will increase from $20,000 to $30,000, allowing businesses to claim accelerated depreciation on a wider range of assets; and, thirdly, that businesses can invest in productive assets without putting pressure on inflation. I commend the amendments to the House.

See this speech in context