Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023

The majority voted against amendments introduced by ACT senator David Pocock (Independent), which means they failed.

Amendment text

(1) Schedule 1, page 4 (line 1) to page 5 (line 4), omit the Schedule, substitute:

Schedule 1 — $20,000 instant asset write-off for small business entities

Income Tax Assessment Act 1997

1 Section 328-170 (paragraph (b) of the paragraph beginning "This Subdivision")

Repeal the paragraph.

2 Subsection 328-175(1)

Omit "(10)", substitute "(9)".

3 Subsection 328-175(10)

Repeal the subsection (not including the notes).

4 Subsection 328-175(10) (note 3)

Omit all words after "of this", substitute "Subdivision in relation to income years between 12 May 2015 and 30 June 2023".

5 Section 328-180 (heading)

Omit "$1,000", substitute "$20,000".

6 Paragraph 328-180(1)(b)

Omit "$1,000", substitute "$20,000".

7 Paragraph 328-180(2)(a)

Omit "$1,000", substitute "$20,000".

8 Paragraph 328-180(3)(a)

Omit "$1,000", substitute "$20,000".

9 Subsection 328-205(4) (example)

Repeal the example, substitute:

Example: When Hannah's van was allocated to her general small business pool for the 2023-24 income year, she estimated that it would be used 50% for her florist business. Due to increasing business, Hannah estimates the van's use to be 70% for the 2023-24 year, and 90% for the 2024-25 year. She makes an adjustment under section 328-225 for both those years.

Hannah sells the van for $20,000 at the start of the 2026-27 income year. She must now average the business use estimates for the van for the year it was allocated to the pool and the next 3 years to work out the taxable purpose proportion of its termination value. The average is worked out as follows:

The taxable purpose proportion of the van's termination value is, therefore:

75% of $20,000 = $15,000

10 Subsection 328-210(1)

Omit "$1,000", substitute "$20,000".

11 Subsection 328-210(3) (example)

Repeal the example, substitute:

Example: Alice's Landscaping is a small business entity for the 2023-24 income year and chooses to use this Subdivision for that year. The business has an opening pool balance of $25,000 for its general small business pool for that year.

During that year, Alice acquired a new car for $40,000. The taxable purpose proportion of its adjustable value is:

$40,000 x 80% business use estimate = $32,000

Alice also sold her truck for $39,600 during that year. The truck was used 100% in the business.

To work out whether she can deduct an amount under this section, Alice uses this calculation:

$25,000 + $32,000—$39,600 = $17,400

Because the result is less than $20,000, Alice can deduct the $17,400 for the income year. The pool's closing balance for the year is zero.

12 Subsection 328-215(4)

Omit "$1,000", substitute "$20,000".

13 Subsection 328-250(1)

Omit "$1,000", substitute "$20,000".

14 Subsection 328-250(4) (heading)

Omit "$1,000", substitute "$20,000".

15 Subsection 328-250(4) (note)

Before "or 328-181", insert "in relation to income years ending on or before 30 June 2023".

16 Subsection 328-253(4) (heading)

Omit "$1,000", substitute "$20,000".

17 Subsection 328-253(4) (note)

Before "or 328-181", insert "in relation to income years ending on or before 30 June 2023".

Income Tax (Transitional Provisions) Act 1997

18 Subsections 328-180(2) and (3)

After "of that Act", insert "(as in force immediately before its repeal by Schedule 1 to the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024)".