Andrew McLachlan (SA, Deputy-President) Share this | Link to this | Hansard source

I will now put the questions on the remaining stages of the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023. I will first deal with the second reading amendment on sheet 2338, moved by the opposition.

Oppo sition 's circulated amendment—

At the end of the motion, add ", but the Senate:

(a) notes that:

(i) the former government provided extensive support for 3.6 million small and medium businesses, which employ almost 8 million Australians, including through tax relief to support investment and reduce costs; energy programs and initiatives to reduce their power bills; and providing billions in support to keep small businesses open and Australians in jobs during the pandemic,

(ii) small and medium businesses will be hurt the hardest by the Government's first round of workplace reforms, which will harm firm growth and hurt competition,

(iii) despite promising to only raise taxes on multinationals at the election, the Government has broken promises by raising taxes on superannuation, on unrealised capital gains, on franking credits, and by ending small business tax incentives; and

(b) calls on the Government to support the Opposition's amendment to restore the instant asset write-off to pre-COVID-19 levels to boost productivity and take pressure off prices".

Andrew McLachlan (SA, Deputy-President) Share this | Link to this | Hansard source

The question now is that the bill be now read a second time.

Question agreed to.

Bill read a second time.

The question is that opposition amendments on sheet 2337 be agreed to.

Opposition's circulated amendments—

SHEET 2337

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

(2) Schedule 1, heading, page 4 (line 2), omit "small business entities", substitute "small and medium business entities".

(3) Schedule 1, page 4 (after line 9), 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.

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

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

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

Andrew McLachlan (SA, Deputy-President) Share this | Link to this | Hansard source

I will now deal with the amendments circulated by Senator David Pocock, on sheet 2252.

Senator David Pocock's circulated amendments—

SHEET 2252

(1) Schedule 1, page 4 (line 1) to page 5 (line 4), omit the Schedule, substitute:

Schedule 1 — $20,000 instant asset write-off for small business entities

Income Tax Assessment Act 1997

1 Section 328-170 (paragraph (b) of the paragraph beginning "This Subdivision")

Repeal the paragraph.

2 Subsection 328-175(1)

Omit "(10)", substitute "(9)".

3 Subsection 328-175(10)

Repeal the subsection (not including the notes).

4 Subsection 328-175(10) (note 3)

Omit all words after "of this", substitute "Subdivision in relation to income years between 12 May 2015 and 30 June 2023".

5 Section 328-180 (heading)

Omit "$1,000", substitute "$20,000".

6 Paragraph 328-180(1)(b)

Omit "$1,000", substitute "$20,000".

7 Paragraph 328-180(2)(a)

Omit "$1,000", substitute "$20,000".

8 Paragraph 328-180(3)(a)

Omit "$1,000", substitute "$20,000".

9 Subsection 328-205(4) (example)

Repeal the example, substitute:

Example: When Hannah's van was allocated to her general small business pool for the 2023-24 income year, she estimated that it would be used 50% for her florist business. Due to increasing business, Hannah estimates the van's use to be 70% for the 2023-24 year, and 90% for the 2024-25 year. She makes an adjustment under section 328-225 for both those years.

Hannah sells the van for $20,000 at the start of the 2026-27 income year. She must now average the business use estimates for the van for the year it was allocated to the pool and the next 3 years to work out the taxable purpose proportion of its termination value. The average is worked out as follows:

The taxable purpose proportion of the van's termination value is, therefore:

75% of $20,000 = $15,000

10 Subsection 328-210(1)

Omit "$1,000", substitute "$20,000".

11 Subsection 328-210(3) (example)

Repeal the example, substitute:

Example: Alice's Landscaping is a small business entity for the 2023-24 income year and chooses to use this Subdivision for that year. The business has an opening pool balance of $25,000 for its general small business pool for that year.

During that year, Alice acquired a new car for $40,000. The taxable purpose proportion of its adjustable value is:

$40,000 x 80% business use estimate = $32,000

Alice also sold her truck for $39,600 during that year. The truck was used 100% in the business.

To work out whether she can deduct an amount under this section, Alice uses this calculation:

$25,000 + $32,000—$39,600 = $17,400

Because the result is less than $20,000, Alice can deduct the $17,400 for the income year. The pool's closing balance for the year is zero.

12 Subsection 328-215(4)

Omit "$1,000", substitute "$20,000".

13 Subsection 328-250(1)

Omit "$1,000", substitute "$20,000".

14 Subsection 328-250(4) (heading)

Omit "$1,000", substitute "$20,000".

15 Subsection 328-250(4) (note)

Before "or 328-181", insert "in relation to income years ending on or before 30 June 2023".

16 Subsection 328-253(4) (heading)

Omit "$1,000", substitute "$20,000".

17 Subsection 328-253(4) (note)

Before "or 328-181", insert "in relation to income years ending on or before 30 June 2023".

Income Tax (Transitional Provisions) Act 1997

18 Subsections 328-180(2) and (3)

After "of that Act", insert "(as in force immediately before its repeal by Schedule 1 to the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024)".

The question before the Senate is that the amendments on sheet 2252 be agreed to.

Andrew McLachlan (SA, Deputy-President) Share this | Link to this | Hansard source

I will now deal with the amendments circulated by the Australian Greens. The question is that the amendments on sheet 2233 be agreed to.

Greens' circulated amendments—

(1) Schedule 1, item 1, page 4 (line 6), omit "30 June 2024", substitute "30 June 2026".

(2) Schedule 1, item 2, page 4 (line 9), omit "30 June 2024", substitute "30 June 2026".

(3) Schedule 1, item 4, page 4 (line 18), omit "30 June 2024", substitute "30 June 2026".

(4) Schedule 1, item 4, page 4 (line 21), omit "30 June 2024", substitute "30 June 2026".

(5) Schedule 1, item 5, page 4 (line 27), omit "30 June 2024", substitute "30 June 2026".

(6) Schedule 1, item 6, page 5 (line 4), omit "30 June 2024", substitute "30 June 2026".

(7) Schedule 2, item 1, page 6 (line 14), omit "30 June 2024", substitute "30 June 2026".

(8) Schedule 2, item 1, page 7 (line 6), omit "1 July 2024", substitute "1 July 2026".

(9) Schedule 2, item 1, page 7 (line 11), omit "1 July 2024", substitute "1 July 2026".

(10) Schedule 2, item 1, page 7 (line 21), omit "30 June 2024", substitute "30 June 2026".

(11) Schedule 2, item 1, page 8 (line 28), omit "1 July 2024", substitute "1 July 2026".

(12) Schedule 2, item 1, page 9 (line 14), omit "30 June 2024", substitute "30 June 2026".

(13) Schedule 2, item 1, page 10 (line 20), omit "(for example, photovoltaic cells)".

(14) Schedule 2, item 1, page 10 (after line 32), at the end of section 328-470, add:

(7) Despite subsection (6):

(a) an asset that is a solar photovoltaic system that is part of a package of energy upgrades is not excluded by that subsection; and

(b) expenditure on such an asset is not excluded by that subsection.