Gavin Pearce (Braddon, Liberal Party, Shadow Assistant Minister for Health, Aged Care and Indigenous Health Services) Share this | Link to this | Hansard source

Last week I wrote to the federal Treasurer seeking an extension to our instant asset write-off initiative to cover the in good faith investments, audit and invoice prior to 30 June 2023 that will not be delivered, received, into service by this due date. Since the inception of the instant asset write-off scheme, I've heard countless examples of its benefits. Take Burnie based family owned transport business De Bruyn's. They used the instant asset write-off to move their procurement program a full year ahead of schedule. This meant they could purchase a new fleet of trucks, which resulted in reduced maintenance costs, greater fuel efficiency, reduced emissions, better economics, and the list goes on. But most importantly, it has supported this business's ageing driving fleet. Their drivers are older. They cannot get people in these trucks. So, they're using older drivers, and these new ergonomically designed vehicles help that and assist that.

Committed to the development of our region, De Bruyn's used this tax saving to invest in a new depot in Devonport, creating more jobs and more opportunities, and subcontracts were involved in its construction. I'm now hearing that there are businesses out there that have made these in-good-faith investments under this measure but, because of manufacturing delays and supply chain constraints, won't receive their assets prior to the 30 June deadline. Trucks, tractors and other assets associated with mining, agriculture, forestry, transport and other businesses often require an investment of hundreds of thousands of dollars, and these assets won't be eligible under the new pared-back instant asset write-off measure from 1 July.

Take Ian Mahoney, who owns the BP petrol station. Ian ordered new underground fuel tanks. He made the decision based on the instant asset write-off measure. He purchased the tanks, and they're sitting in Port Melbourne, waiting for delivery. They won't meet him by that drop-dead date. That's not Ian's fault. He shouldn't be left to carry the unexpected financial burden. I'm genuinely concerned that this government doesn't recognise the severity of what they're doing and what they're responsible for.

Businesses across the north-west, the west coast and King Island in the great state of Tasmania are moving forward. They're doing the heavy lifting. They're taking the risks themselves. It's their capital. They're making this contribution to improve productivity and to reduce emissions, and we know that they're the ones that are employing locals in the first place.

I'm asking the federal government—I'm pleading with the federal government—not to turn your back on the business sector but to back it in, to honour this good-faith investment made under the instant asset write-off measure. It's something that can be fixed now with the stroke of a pen. I plead with the government to fix it. (Time expired)