Zali Steggall (Warringah, Independent) Share this | Hansard source

by leave—I move amendments (1), (3), (5) and (6) to government amendment (2) on sheet UG105, as circulated in my name, together:

(1) Amendment (2), omit "$20,000", substitute "$50,000".

(2) Amendment (2), items 1 to 2, omit the items, substitute:

1 Section 328-180 (heading)

Omit "to30 June 2024".

2 Subsection 328-180(1) (definition of increased access year )

Repeal the definition, substitute:

increased access year: an income year is an increased access year if any day in the year occurs on or after 12 May 2015.

(3) Amendment (2), after item 2, insert:

2A Paragraph 328-180(4)(d)

Omit "$20,000", substitute "$50,000".

(4) Amendment (2), omit item 3, substitute:

3 Paragraph 328-180(4)(d)

Omit "and on or before 30 June 2024" (wherever occurring).

(5) Amendment (2), after item 3, insert:

3A Paragraphs 328-180(5)(e) and (6)(e)

Omit "$20,000", substitute "$50,000".

(6) Amendment (2), omit item 4, substitute:

4 Paragraph 328-180(5)(e)

Omit all the words after "if the amount", substitute "is so included at any time on or after 1 July 2023.".

5 Paragraph 328-180(6)(e)

Omit all the words after "for an income year", substitute "that ends on or after 1 July 2023.".

It's really important that, in this place, there is always much said about support for small to medium business, but there isn't always the follow through when it comes to the actions that will make a real difference. Small to medium businesses perform much of the heavy lifting of our economy. Together, they account for more than half of the nation's GDP, and contribute over $500 billion to our economy, providing almost 70 per cent of local employment. Small businesses are struggling. The MYOB Business Monitor found that 33 per cent of revenue declined in small business for December 2025. It also found that 24 per cent of small businesses were struggling with maintaining cashflow. A fifth of small to medium businesses are still under pressure because of late payment from customers, consistent with the increased inflationary pressure we're seeing across the economy. The pressure of subsequent rental increases, cost of utilities, fuel prices, rising supply costs, lower consumer spending, the difficulty of finding and retaining staff, and, of course, much increased insurance premiums, all continue to have a really negative impact on small to medium business.

We need to do more in this place to stand up for small business. The government's amendment today has highlighted that small business is sometimes an afterthought, I would say, because I am critical that this bill is a bill that addresses a lot of issues, and it slaps a lot of things together. The instant asset write-off is an important feature of the tax system and it should be made permanent.

To that effect, I supported the amendment by the member for Petrie, but I would urge the opposition to now come and stand with me on this amendment because it is incredibly important we do more. This program incentivizes investment but also improves cash flow, and I very much support making this permanent so that businesses can plan ahead, instead of having what they've had over the course of this parliament—an argy-bargy between government and opposition, which then saw these provisions not come into effect in the financial year needed and businesses couldn't plan for and actually write off those assets.

But this instant asset write-off needs to be increased to $50,000 at a minimum. It reflects the instant asset write-off measures provided to small businesses during the pandemic. We know that was effective and efficient. Small businesses are still struggling with the impacts of the pandemic, lower migration and high supply costs. These measures are supported by small-business groups and industries such as COSBOA, the Australian Chamber of Commerce and Industry, and MYOB as well as industry groups such as the National Electrical and Communications Association. They all support that this instant asset write-off should be increased to $50,000. The move to increase it to $50,000 will assist with the rising cost of goods and services and the urgent need to stimulate growth in productivity.

These businesses need room to breathe. The rise of online cybersecurity will see a significant cost impact on small business. There has been a 20 per cent increase in the cost of goods since the pandemic. For construction businesses, building costs have risen 40 per cent since 2020. Costs of commercial vehicles have increased 104 per cent since January 2020. All of these issues identify how $20,000, whilst a good start, is simply not sufficient to genuinely help small business. So increasing it to $50,000 will provide that extra room for companies to provide wage increases and employ more casual and part-time workers.

It will make a difference when we're looking at the challenges small businesses face, especially the opportunity to electrify and to get some sustainability and some efficiency within their operations. It simply cannot be done for $20,000. The reality is, for example, with a small business that owns their premises and wants to put solar on the rooftop, get a battery or electrify their fleet, if they want to get some efficiencies around their air-conditioning operations, get new plants or new infrastructure, all of these things will be significantly more than $20,000.

I've met with the chambers of commerce and many small businesses in my electorate. They are desperately asking the government and the opposition to come together with a meaningful change so that small businesses can improve their cash flow, invest in their structure, increase their productivity and ultimately employ more people within our community. I urge the opposition—be more than just words and more than just promises at election time. Come and stand with us. I urge the government, of course, to do so as well and vote for this to be a $50,000 asset write-off for small businesses.

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