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representatives vote 2023-11-27#3
Edited by
mackay staff
on
2024-06-07 12:10:40
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Title
Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 - Consideration in Detail- Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 - Consideration in Detail - Increase to $30,000
Description
-
- The majority voted against [amendments](https://www.openaustralia.org.au/debate/?id=2023-11-27.41.1) introduced by Barker MP [Tony Pasin](https://theyvoteforyou.org.au/people/representatives/barker/tony_pasin) (Liberal), which means they failed.
- ### What do the amendments do?
- Mr Pasin [explained that](https://www.openaustralia.org.au/debate/?id=2023-11-27.41.1):
- > *The coalition amendments to this bill give effect to an extension of the instant asset write-off to 26,500 medium businesses and extend the value of assets eligible to $30,000.*
- ### Amendment text
- > *(1) Schedule 1, heading, page 4 (lines 1 and 2), omit "$20,000 instant asset write-off for small business entities", substitute "$30,000 instant asset write-off for small and medium business entities".*
- >
- > *(2) Schedule 1, page 4 (after line 2), 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.*
- >
- > *(3) Schedule 1, item 4, page 4 (line 15), omit "$20,000", substitute "$30,000".*
- >
- > *(4) Schedule 1, item 5, page 4 (line 24), omit "$20,000", substitute "$30,000".*
- >
> *(5) Schedule 1, item 6, page 5 (line 1), omit "$20,000", substitute "$30,000".*- > *(5) Schedule 1, item 6, page 5 (line 1), omit "$20,000", substitute "$30,000".*
-
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representatives vote 2023-11-27#3
Edited by
mackay staff
on
2024-06-07 12:10:13
|
Title
Bills — Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023; Consideration in Detail- Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 - Consideration in Detail
Description
<p class="speaker">Tony Pasin</p><p>by leave—At the request of the member for Hume, I move opposition amendments (1) through (5) together:</p>-
- The majority voted against [amendments](https://www.openaustralia.org.au/debate/?id=2023-11-27.41.1) introduced by Barker MP [Tony Pasin](https://theyvoteforyou.org.au/people/representatives/barker/tony_pasin) (Liberal), which means they failed.
- ### What do the amendments do?
- Mr Pasin [explained that](https://www.openaustralia.org.au/debate/?id=2023-11-27.41.1):
- > *The coalition amendments to this bill give effect to an extension of the instant asset write-off to 26,500 medium businesses and extend the value of assets eligible to $30,000.*
- ### Amendment text
- > *(1) Schedule 1, heading, page 4 (lines 1 and 2), omit "$20,000 instant asset write-off for small business entities", substitute "$30,000 instant asset write-off for small and medium business entities".*
- >
- > *(2) Schedule 1, page 4 (after line 2), 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.*
- >
- > *(3) Schedule 1, item 4, page 4 (line 15), omit "$20,000", substitute "$30,000".*
- >
- > *(4) Schedule 1, item 5, page 4 (line 24), omit "$20,000", substitute "$30,000".*
- >
- > *(5) Schedule 1, item 6, page 5 (line 1), omit "$20,000", substitute "$30,000".*
<p class="italic">(1) Schedule 1, heading, page 4 (lines 1 and 2), omit "$20,000 instant asset write-off for small business entities", substitute "$30,000 instant asset write-off for small and medium business entities".</p><p class="italic">(2) Schedule 1, page 4 (after line 2), after item 2, insert:</p><p class="italic">2A After subsection 328-180(3)</p><p class="italic">Insert:</p><p class="italic"> <i>Extension to medium business entities</i></p><p class="italic">(3A) If you are an entity covered by subsection (3B) for an income year, then for the purposes of doing any of the following:</p><p class="italic">(a) deducting under subsection 328-180(1) of the <i>Income Tax Assessment Act 1997</i> 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;</p><p class="italic">(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;</p><p class="italic">(c) applying subsection 328-180(3) of that Act to you and an asset in circumstances where:</p><p class="italic">(i) paragraph (5)(e) of this section applies to you and an amount included in the second element of the asset's cost; and</p><p class="italic">(ii) paragraph (6)(e) of this section applies to you for a deduction for the asset for an income year;</p><p class="italic">Subdivision 328-D of the <i>Income Tax Assessment Act 1997</i> applies to you for an income year and the asset as if you were a small business entity for the income year.</p><p class="italic">(3B) An entity is covered by this subsection for an income year if:</p><p class="italic">(a) the entity is not a small business entity for the income year; and</p><p class="italic">(b) the entity would be a small business entity for the income year if:</p><p class="italic">(i) each reference in Subdivision 328-C of the <i>Income Tax Assessment Act 1997</i> (about what is a small business entity) to $10 million were instead a reference to $50 million; and</p><p class="italic">(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.</p><p class="italic">(3) Schedule 1, item 4, page 4 (line 15), omit "$20,000", substitute "$30,000".</p><p class="italic">(4) Schedule 1, item 5, page 4 (line 24), omit "$20,000", substitute "$30,000".</p><p class="italic">(5) Schedule 1, item 6, page 5 (line 1), omit "$20,000", substitute "$30,000".</p><p>The coalition amendments to this bill give effect to an extension of the instant asset write-off to 26,500 medium businesses and extend the value of assets eligible to $30,000.</p><p>This will simplify depreciation for Australia's 3.6 million small to medium businesses, cutting red tape while boosting investment in productive assets to improve their businesses, lower their costs and, in turn, lower prices. This will drive productivity at a time when it has experienced a historic collapse under Labor, which will drive economic growth to fund the essential services Australians deserve.</p><p>Following the temporary and targeted extensions during the COVID-19 pandemic, the government has ignored calls from business groups to lower the instant asset write-off threshold to levels not seen since the 2018-2019 financial year. The coalition amendments restore the instant asset write-off to the levels introduced in the 2019-2020 budget. This aligns the eligibility with that of the 25 per cent small-business company tax threshold and Labor's small-business energy incentive measure.</p><p>The coalition understands that, when business owners can keep more of their own money, they're able to invest back into the business, boost productivity, grow the economy and create new and, most importantly, local jobs. The coalition amendments mean: firstly, that 26,500 businesses with aggregate turnover of up to $50 million will be eligible to use the instant asset write-off; secondly, that the asset threshold will increase from $20,000 to $30,000, allowing businesses to claim accelerated depreciation on a wider range of assets; and, thirdly, that businesses can invest in productive assets without putting pressure on inflation. I commend the amendments to the House.</p> <p class="speaker">Stephen Jones</p><p>The government won't be supporting the amendments that have just been moved by the member for Barker. I was waiting in anticipation for the member for Barker to produce the documents that they have prepared themselves for the costings in relation to this measure or to refer to the costings that they have produced in relation to this measure. In both cases, there was deafening silence. This is relevant because, in about an hour's time, I am anticipating that the member for Hume will be puffing himself up in this place and talking about how the government is spending too much. At the same time, he's moving bills into this House which would require us to spend even more. We won't be doing that. We have carefully calibrated these measures.</p><p>I will say, in relation to the measures that have previously been considered and moved by the member for Warringah, we thank the member for Warringah for the engagement that we've had in relation to these bills. We've had good-faith engagement with her and other members of the crossbench in relation to those measures. But we think, in combination, the two measures, the small-business energy incentive and the incident tax write-off measures, make up a $600 million package of relief and, together with the other measures that have been put in place by the government, they provide a good package of relief with the right incentives for small businesses.</p><p>I will say, however, that the points made by the member for Warringah in relation to the amendments she moved make a powerful case for the swift consideration and movement of these bills through both the House of Representatives and the other place. I commend all members of this place and the other place to do exactly that.</p> <p class="speaker">Adam Bandt</p><p>For the Consideration in Detail stage, I just want to make a short contribution about schedules 1 and 2 of the bill and also to speak to the amendments moved by the opposition. In particular, schedule 2 implements the small-business energy incentive that was announced in the budget. This is one component of the $1.7 billion in electrification and energy efficiency that the Greens secured through negotiations with the government. On budget night, it was slated as a $314 million package, but the way that the legislation has been designed does raise real concerns for us about whether the full amount of money will be spent.</p><p>Firstly, it only runs until the end of this financial year, which we're already deeply in, with only seven months remaining.</p><p>That makes it impossible for any thought-through and methodical energy-saving investments to occur for many businesses. Some may have seen that this was coming and may have prepared for it, but many won't have, and many small-business owners are just too busy to manage a project in these short time frames.</p><p>Secondly, unfortunately, despite the announcement made in the budget, we're yet to see anything from the Treasury or the department to promote awareness of this scheme amongst small and medium-sized business owners. Thirdly, installing solar panels is specifically excluded for no readily apparent reason.</p><p>Lastly, the equipment has to be installed ready for use by 30 June 2024, and questions were raised in the Senate committee hearings about whether that was going to be feasible and whether it was appropriate to be doing such significant work—involving electricity, obviously—in such a period of time. The last thing that we need at the moment is the forcing of important schemes into a tight deadline, so the schedule needs changing and the scheme needs to be extended.</p><p>There is a final important area where the bill needs to be improved. This will put beyond doubt that the cost involved in disconnecting a business premises from the gas network is a capital expense and is therefore eligible to receive government support under schedules 1 and 2. If you're applying a High Court pronouncement, there may be some uncertainty over whether disconnecting from gas is an operating expense or a capital expense. If it is, these one-off network costs could take advantage of the energy incentive and the instant asset write-off.</p><p>That brings us to schedule 1. Because of the way in which the energy incentive scheme works, is it a 20 per cent bonus on top of any existing asset deduction scheme, such as the instant asset write-off in schedule 1? Again, rather than just legislating this for the next seven months until we have to legislate it again, it also needs to be extended. The opposition is moving an amendment to lift the value of assets that can be instantly written off from $20,000 to $30,000. Given that this will support the value of the small business energy incentive, we see no reason to object to this proposal, so the Greens will support this current amendment in the House, but we reserve our position on the bill as a whole and any amendments until the Senate debate commences.</p> <p class="speaker">Milton Dick</p><p>The question before the House is that the amendments moved by the member for Barker in the name of the member for Hume be agreed to.</p><p></p><p></p> -
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