Kate Chaney (Curtin, Independent) Share this | Hansard source

I'd like to speak today in support of the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025. Schedules 1 to 6 of the bill contain reforms that address consumer protection, financial transparency and responsible lending. These are measures that I believe are in the public interest and would be supported by the constituents and businesses in Curtin. I think they're sensible measures, and I won't be specifically addressing them in any more detail today. But I would like to take the opportunity to make very brief remarks on schedule 7, which amends the Income Tax (Transitional Provisions) Act 1997 to extend the $20,000 instant asset write-off for small businesses until 30 June 2026.

As I've said in the House before, the $20,000 write-off is a practical and effective way to support the small businesses that form the backbone of our economy. It allows eligible businesses to immediately deduct the cost of assets up to $20,000, rather than depreciating them over time. This improves cash flow, simplifies accounting and encourages investment in productivity-enhancing equipment. The measure applies to up to four million small businesses with turnover of under $10 million. It's a practical change that will make measurable differences for small businesses, including about 20,000 small businesses in my electorate of Curtin, many of whom I've spoken to.

It's worth noting that this was almost a failed Labor promise earlier this year, when the announced extension to June 2025 was still not legislated in the last sitting week before the end of the financial year. We were contacted by small businesses who were stuck in limbo and uncertainty as they were waiting and hoping for the extension to be enacted. This had been announced but not legislated, and many small businesses had incurred the expense on the expectation that the $20,000 write-off would apply in the 2024-25 financial year and were shaping up for a nasty surprise. It was only after crossbench pressure, advocacy from me and other Independents, that the legislation was passed in time in May this year. It's a good example of how the crossbench is listening to the community and holding the government to account.

I commend the government for extending and legislating the write-off to 30 June 2026, this time in a timely fashion. It does gives small businesses the confidence to continue to invest and plan ahead. But we also must consider the long-term stability of the measure. The threshold has changed multiple times over the years, and that inconsistency undermines its effectiveness. Small businesses in Curtin need this certainty so they can keep investing in growing our local economy. If we're serious about supporting small businesses, we should make the write-off permanent and index the threshold to inflation to ensure that it remains relevant and reliable. That's why I've seconded the member for Mackellar's amendment to extend this measure beyond one year and make it a more permanent feature of our tax system so that small businesses can make investments in productivity-enhancing improvements with certainty. So I commend that amendment and this bill to the House.

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