CLOSE BUT NO CIGARS YET FOR INSTANT ASSET WRITE-OFF
2 April 2019
The increase from $20,000 to $30,000 for the instant asset write-off initiative along with a change in turnover threshold announced in tonight’s Federal Budget is welcomed but doesn’t go far enough, according to the Institute of Public Accountants (IPA).
“The instant asset write-off was one of the IPA’s signature policy recommendations, and the boost from $20,000 to $30,000 is welcomed, as is the increase in the turnover threshold from $10M to $50M,” said IPA chief executive officer, Andrew Conway.
“However, the fact remains it is still a year by year proposition with the extension of the initiative to 30 June 2020 only.
“We believe this initiative needs to be a permanent fixture of the taxation system and further increased to encourage business reinvestment, growth and employment opportunities.
“Government needs to get serious about this measure and not use it as a dangling carrot leading into every Federal Budget.
“Many small businesses that may be planning for their future growth would be potentially planning for assets such as plant and equipment over a number of years, reflecting their cashflow circumstances and their capacity to invest. The measure needs to be permanent to provide small business with the certainty required,” said Mr Conway.