27/06/2024
SMALL BUSINESS DUDED AGAIN BY THIS GOVERNMENT. INSANE!
The $20,000 instant asset write-off and small business energy benefits
passed Parliament on Tuesday more than a year since being announced.
The long-awaited passage of two key tax incentives this week has been met
with criticism from small business advocates who say the delay has rendered
the measures virtually useless for the current financial year.
On Tuesday, Parliament approved the Small Business Energy Incentive offering
up to $20,000 in deductions for energy efficiency upgrades and an increase
in the instant asset write-off threshold to $20,000 more than a year after
their initial announcement.
Minister for Small Business Julie Collins said the passage of the bills
demonstrated the government's commitment to putting small business at the
centre of its decision making.
"The Albanese Labor government is committed to delivering a better deal for
small business and recognises the sector is the engine room of the
Australian economy," she said.
"We're focused on delivering responsible, practical assistance to small
businesses so they can continue to invest and grow. The passage of
legislation delivers on this."
But with both measures set to expire at the end of the month, Australian
Small Business and Family Enterprise Ombudsman criticised Parliament for its
"political squabbling" and failing to give small businesses certainty.
"The small business community is cranky and exasperated about the incredibly
slow way these measures have progressed," ombudsman Bruce Billson said.
"It is not fine for political squabbling to run down the clock so there is
no realistic prospect a small business can have certainty to provision for
and spend this money with confidence the tax deduction is real."
It was also "absurd" to expect businesses to evaluate, purchase, and
implement eligible investments by 30 June, he said.
"The policy was designed to encourage small businesses to spend money it
would otherwise not have spent, but a lack of certainty over the program may
have deterred them."
The instant asset write-off and small businesses energy incentive is part of
the Treasury Laws Amendment (Support for Small Business and Charities and
Other Measures) Bill 2023.
The bill was introduced to Parliament in September but was delayed due to
disagreements between the House and Senate over provisions on the small
business instant asset write-off scheme.
BDO tax partner Mark Molesworth said it was now "almost certainly too late"
for the measures to have any meaningful impact on businesses.
"It is disappointing that yet again small businesses have been left in limbo
- with literally only three business days left in the financial year - when
a meaningful increase to the instant asset write-off should have been made a
permanent feature of the system years ago," he said.
Molesworth said the difficulty in getting the measure passed was emblematic
of the dysfunctional way that Australia approaches setting tax parameters.
"While this is an important measure for small business, it is a relatively
small concession in the context of Australia's finances," he said.
"It is to be hoped that lessons are learned from this, and the 2025
extension is passed expeditiously and, for preference, before the new
financial year begins."
Billson also called for safeguards to prevent future delays, with the
instant asset write-off resetting to $1,000 every year unless new
legislation was passed to increase it.
"Laws with a time deadline should come with a minimum implementation period.
We would suggest no less than six months from royal assent until the time a
scheme ends."
"Small businesses need to be able to trust Parliament to give them enough
time to understand changes and with certainty factor them into their
planning."
However, the bill to extend the $20,000 instant asset write-off scheme until
30 June 2025 has already hit a snag since being introduced to Parliament
earlier this month.
On Tuesday, the Senate Economics Legislation Committee tasked with examining
the measure on Tuesday sought an extension until August to complete its
report, originally due back Monday. “Accounting Times”.
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