Small businesses, facing financial pressures and eager to expand their enterprises, are urging the federal parliament for swift action on a budget measure promised last year that is set to lapse on June 30. The proposed legislation, known as the Treasury Laws Amendment Bill 2023, is causing concern among business owners and industry leaders due to its pending status.
Ms Power, a small business owner, emphasizes the significance of the instant asset write-off scheme, highlighting its role in tax minimization strategies and asset investment decisions. Simplifying the concept, eligible businesses can immediately deduct the cost of purchased items such as equipment or machinery, thus reducing their taxable income. Over the years, the instant asset write-off has undergone modifications, including a recent temporary increase in the threshold to $20,000, aiming to support small businesses in their growth endeavors.
Despite the Senate's approval of an amendment proposing to raise the threshold to $30,000, the final sign-off from the House of Representatives is pending, leading to a stalemate that leaves businesses in uncertainty. The government blames opposition and delaying tactics for the bill's sluggish progress, warning that businesses might miss out on crucial cash flow support if the legislation isn't passed before tax return lodgments commence on July 1. As businesses await a decision, the Small Business Council CEO, Luke Achterstraat, stresses the importance of providing certainty over a prolonged period, allowing businesses to adjust their strategies and financial planning accordingly.