# Foreshadowed increase in small business instant asset writeoff from $20,000 to $25,000 from 29 January 2019



## Jack Malarkey (Jan 11, 2016)

Australian Taxation Office:










(https://www.ato.gov.au/business/dep...nces/simpler-depreciation-for-small-business/)

(Thanks to @macbri for drawing attention to this announcement, which I had missed.)


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## RoboRider (Aug 26, 2018)

Still being read in lower house and Bandt has moved some amendments

https://parlinfo.aph.gov.au/parlInf...;page=0;query=BillId:r6282 Recstruct:billhome


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## Jack Malarkey (Jan 11, 2016)

Many thanks, @RoboRider, for the very helpful information in the post above.

Both Houses of Parliament will sit on Tuesday 2 April 2019 and Wednesday 3 April 2019.

The House of Representatives (but not the Senate) is due also to sit on Thursday 4 April 2019 and again from Monday 15 April 2019 to Thursday 18 April 2019.

(https://www.pmc.gov.au/sites/default/files/publications/2019-parliamentary-sittings.pdf)

The Prime Minister may well call the election a few days after the Budget on Tuesday 2 April. Sunday 7 April is a distinct possibility for this.

There's a significant prospect that the Bill relating to the instant asset writeoff will be enacted ahead of the calling of the election.

Any unenacted Bills before Parliament automatically lapse on the calling of an election ('proroguing Parliament'). It would then be a decision for the incoming Government to reintroduce any lapsed Bills.


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## Jack Malarkey (Jan 11, 2016)

The second reading speech by the Assistant Treasurer, the Hon Stuart Robert MP, for this Bill provides a good overview of the proposed amendments as well as outlining other related simplified depreciation provisions.

Here are extracts from the speech:

...This bill will increase the instant asset write-off threshold from $20,000 to $25,000 and extend it until 30 June 2020. The increased threshold applies from announcement on 29 January 2019.

...

The government has built on the very successful $20,000 instant asset write-off first introduced by the government in the 2015-16 budget. The government's $25,000 threshold will improve cash flow by enabling business to immediately deduct purchases of eligible assets, each costing less than $25,000.

There is no limit on the amount of assets that a business can purchase. Assets valued at $25,000 or more can be placed into the small business simplified depreciation pool and depreciated at a rate of 15 per cent in the first income year and 30 per cent each year thereafter. The pool itself can also be immediately deducted if its value falls below $25,000 at the end of the financial year.

To facilitate access to this measure, the lockout rules that stop small businesses that elect out of the simplified depreciation regime from re-entering for five years will continue to be suspended until 30 June 2020. This bill will benefit small businesses, improving their cash flow and bringing forward investment. The 25,000 instant asset write-off also reduces red tape for small businesses as they no longer need to track the annual depreciation for assets that are written off immediately or maintain detailed records substantiating their depreciation claims. It will boost small-business activity and encourage more small businesses to re-invest in their operations and replace or upgrade their tools and equipment.

...

(https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=BillId_Phrase:"r6282" Dataset:hansardr,hansards Title:"second reading";rec=3)


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## Pen (May 14, 2018)

This may well be the last thing small business gets if Shortbrains gets in. All monies after that are to go towards bringing non tax paying reffo's into the country.


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## Jack Malarkey (Jan 11, 2016)

The Bill relating to the instant asset write-off was passed by the House of Representatives on Tuesday 2 April 2019. It now goes before the Senate.









(https://parlinfo.aph.gov.au/parlInf...;page=0;query=BillId:r6282 Recstruct:billhome)


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## WestSydGuy (Jun 7, 2018)

So, what did the treasure mean tonight when he said “immediately” the small business instant tax write off is now $30k? Also that it can be used multiple times, I think I heard unlimited number of times.


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## Jack Malarkey (Jan 11, 2016)

WestSydGuy said:


> So, what did the treasure mean tonight when he said "immediately" the small business instant tax write off is now $30k? Also that it can be used multiple times, I think I heard unlimited number of times.


According to news.com.au's summary of tonight's Budget:

The instant asset write-off has also been extended and expanded. It will now cover purchases under $30,000, up from $25,000, and can be used by businesses with annual turnover of under $50 million, up from $10 million previously.

Around 22,000 additional businesses employing around 1.7 million people will now be eligible for the tax write-off, which can now be used "every time an asset under that amount is purchased".

(https://www.google.com.au/amp/s/amp...9/news-story/d19c62d66f65620543ae9aaf5032e099)

And here's the relevant part of the Budget speech:

And from tonight the instant asset write-off will be increased and expanded.

It will be increased from $25,000 to $30,000, and it can be used every time an asset under that amount is purchased.

Allowing a café to get a new fridge or grill, a plumber to buy new tools or a courier a new van.

The instant asset write-off will also be expanded to businesses with a turnover of up to $50 million.

This will cover an additional 22,000 businesses, employing 1.7 million Australians.

Already more than 350,000 businesses have taken up the instant asset write-off.

And now, even more will have the chance to do so.

(http://jaf.ministers.treasury.gov.au/speech/002-2019/)

And here's the relevant part of the Treasurer's media release:

In this year's Budget we are increasing the instant asset write-off threshold to $30,000 and expanding access to medium-sized businesses with an annual turnover of less than $50 million. These changes will apply from 7:30pm (AEDT) on 2 April 2019 to 30 June 2020.

Around 22,000 additional businesses employing around 1.7 million workers will now be eligible to access the instant asset write-off. More than 350,000 businesses have already taken advantage of the instant asset write-off.

(http://jaf.ministers.treasury.gov.au/media-release/060-2019/)


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## Pen (May 14, 2018)

You will be able to buy that second hand Beamer or Merc now to meet the new 5 star safety rating coming in. Nothing but the best for pax BUT you're not getting a pay rise:biggrin::biggrin::biggrin:


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## RoboRider (Aug 26, 2018)

They may have announced it in the budget but the relevant legislation still needs to be approved .. just means that the higher limit will be applied from when it was announced if the legislation gets passed


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## Jack Malarkey (Jan 11, 2016)

After introducing the Treasury Laws Amendment (Increasing the Instant Asset Write-Off for Small Business Entities) Bill 2019 in the Senate (expected later today, Wednesday 3 April 2019), the Government is proposing to move amendments to give effect to the further changes to the instant asset write-off as foreshadowed in the Budget.

The amended Bill would then need to return to the House of Representatives to ensure that it is passed in the same form by both Houses ahead of receiving Royal Assent.

For the text of the Government's proposed amendments, see https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:"legislation/amend/r6282_amend_4c95b020-2263-476b-a9d0-7baf64673865".


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## Jack Malarkey (Jan 11, 2016)

On Wednesday 3 April 2019, the Senate passed the relevant Bill with Government amendments to reflect its Budget changes.

The Bill now returns to the House of Representatives so it can pass it in the same form as in the Senate ahead of Royal Assent.










(https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;page=0;query=BillId:r6282 Recstruct:billhome)


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