Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 - Consideration of Senate Message - Increasing asset cost threshold

The majority voted in favour of a motion to insist on disagreeing to the amendments insisted on by the Senate.

Amendment text

(1) Schedule 1, heading, page 4 (line 1), omit “ $20,000 ”, substitute “ $30,000 ”.

(2) Schedule 1, heading, page 4 (line 2), omit “ small business entities ”, substitute “ small and medium business entities ”.

(3) Schedule 1, page 4 (after line 9), after item 2, insert:

2A After subsection 328-180(3)

Insert:

Extension to medium business entities

(3A) If you are an entity covered by subsection (3B) for an income year, then for the purposes of doing any of the following:

(a) deducting under subsection 328-180(1) of the Income Tax Assessment Act 1997 a proportion of the adjustable value of a depreciating asset for an income year in circumstances where paragraph (4)(d) of this section applies to you and the asset;

(b) deducting under subsection 328-180(2) of that Act a proportion of an amount included in the second element of the cost for an asset in circumstances where paragraph (5)(e) of this section applies to you and the amount;

(c) applying subsection 328-180(3) of that Act to you and an asset in circumstances where:

(i) paragraph (5)(e) of this section applies to you and an amount included in the second element of the asset’s cost; and

(ii) paragraph (6)(e) of this section applies to you for a deduction for the asset for an income year;

Subdivision 328-D of the Income Tax Assessment Act 1997 applies to you for an income year and the asset as if you were a small business entity for the income year.

(3B) An entity is covered by this subsection for an income year if:

(a) the entity is not a small business entity for the income year; and

(b) the entity would be a small business entity for the income year if:

(i) each reference in Subdivision 328-C of the Income Tax Assessment Act 1997 (about what is a small business entity) to $10 million were instead a reference to $50 million; and

(ii) the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this subsection.

(4) Schedule 1, item 4, page 4 (line 15), omit “$20,000”, substitute “$30,000”.

(5) Schedule 1, item 5, page 4 (line 24), omit “$20,000”, substitute “$30,000”.

(6) Schedule 1, item 6, page 5 (line 1), omit “$20,000”, substitute “$30,000”.

Reasons for the House of Representatives disagreeing with Senate amendments

The House of Representatives considers that the settings in Schedule 1 to the Bill (as transmitted to the Senate) properly implement the 2023-24 Budget measure to increase the instant asset write-off threshold to $20,000 until 30 June 2024, and provide appropriate, fiscally and economically responsible, support to small businesses.

To prevent any delay in small businesses getting these promised tax benefits as part of Tax Time 2024, the House of Representatives does not agree to these amendments.