Wednesday, 12 September 2018
Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2018; In Committee
I won't respond too much to Senator McKim's contribution except to make the comment in passing that, according to Senator McKim, it was all an accident that the economy crashed in Tasmania under a Labor-Greens government and it was all to do with exchange rates rather than the disastrous antibusiness policies of the Labor Party and the Greens. That contribution was an interesting one. I don't think that many would find it particularly persuasive.
The government won't be supporting the Greens amendment. The government announced in the 2018-19 budget that it will extend the $20,000 instant asset write-off by a further 12 months, to 30 June 2019, for businesses with annual turnover of less than $10 million. This will improve cash flow for small businesses, providing a boost to their activity and investment for a further year. The Greens amendment would increase the threshold to $30,000 for assets relating to energy efficiency or clean energy, on an ongoing basis. The government's $20,000 instant asset write-off is widely supported by stakeholders and applies to all small businesses with an annual turnover less than $10 million. In extending the $20,000 threshold for a further year, the government has sought to strike a balance between helping small businesses' cash flow and investment and the revenue impact on the budget. We therefore don't support the amendment.