Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

The problem with the Labor-Green government and the Labor-Green coalition on the opposition side these days is that they do not understand the difference between revenue and expenditure. There will be no expenditure in relation to this because this is a measure which reduces tax. What this measure does is to leave people with more of their own cash today in order to encourage them to invest that money, which is their money, in their future success. And by targeting it towards profitable small businesses with an annual turnover of up to $2 million, obviously, you are encouraging profitable and successful small businesses to invest in their future success and encouraging them to pursue an ambition to be the most successful that they possibly can be. And by being more successful into the future those small businesses will be able to employ more Australians who, in turn, will be able to pursue opportunities to be successful and get ahead.

So, there is no expenditure linked to this measure. We have already indicated to you that from a tax office point of view the administration of this measure will be managed from within existing resources. So the impact on the budget bottom line, which is of course reflected in black and white in the budget papers, is an impact on revenue, because effectively it is a tax cut. The $20,000 immediate asset write-off brings forward the capacity to deduct tax and it helps improve cash flow for profitable small businesses.