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A Senate report has recommended the bill to implement the $20,000 instant asset write-off measure be passed in its current state, despite calls to make the measure permanent.
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Coalition continues push to make instant asset write-off permanent
06 August 2024
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The Senate Economics Legislation Committee has recommended that Parliament pass the bill to implement a range of policy measures including an extension of the $20,000 instant asset write-off measure for the 2025 income year and a measure to extend the application of the National Credit Code to buy now, pay later services.
The bill was referred to the Senate Economic Legislation Committee early last month.
The committee said it welcomed the measures in the bill which would introduce "appropriate regulation of the BNPL industry, establish a world-leading CbC tax reporting regime and support Australian small businesses".
Schedule 7 of the bill extended the $20,000 instant asset write-off by 12 months until 30 June 2025.
The committee said it acknowledges the widespread support tour extending the $20,000 instant asset write-off for Australian small businesses to 30 June 2025.
"The committee recognises that this measure provides much needed financial support to small businesses and has contributed to the strength of the Australian economy overall," the report said.
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Within a separate part of the report, the Coalition has renewed calls to increase the threshold to $30,000 for the instant asset write-off and for the measure to be made permanent.
The Coalition senators said this would restore business investment incentives to 2019–20 levels.
It noted that the government had voted eight times against delivering a bigger tax cut to small businesses, with the government rejecting amendments by the Senate to increase the threshold to $30,000.
A number of industry bodies have previously pushed for the instant asset write-off to be made permanent, including CPA Australia and The Tax Institute.
CPA Australia has previously said that the threshold period for the instant asset write-off should be permanent to give businesses more certainty.
The Coalition senators said permanently increasing the threshold to $30,000 would be a downpayment on further tax reform that supports small businesses and families.
"This would simplify depreciation for millions of small businesses by cutting red tape, boosting investment in productive assets and lowering business costs and prices," they said in the report.
"It would provide small businesses with regulatory certainty and, importantly, ensure the government can't leave extending the IAWO until the last minute, as it did for the 2023-24 financial year."
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