Taxpayers Australia Ltd has called for the government to make permanent the $20,000 threshold for the small business instant asset write-off in its pre-Budget submission. Keep the $20,000 small business write-off
“The new $20,000 threshold is so far achieving its goal of encouraging more small businesses to invest in productive assets,” says the chief executive of Taxpayers Australia Moti Kshirsagar.
This is evident in Treasury data released in December 2015. Between July and December, more than 99,000 small businesses had claimed the deduction in their 2015 tax returns – about 21,000 more than the same period in 2014, when the threshold was only $1,000.
As the law now stands, the threshold will reduce to $1,000 on 1 July 2017 – which means that the $20,000 threshold will be in place for a mere 25 months. The write-off threshold has already changed three times since the 2012 financial year.
“The frequent changes to the threshold in such a short timeframe have caused confusion and uncertainty among our small business and tax practitioner members,” says Kshirsagar. “The government can really help small businesses by making the $20,000 threshold permanent.”
Taxpayers Australia’s pre-Budget submission also makes a case for a tax offset for older workers, a $2,000 standard deduction for work-related expenses, a small business entity threshold of $5 million and a loss carry-back for small companies.
Note to editor: If you’d like more information about this topic, contact Taxpayers Australia’s Business Services Manager, Lisa Greig, at email@example.com.
Taxpayers Australia is a not-for-profit organisation committed to a fairer and more transparent taxation system for every Australian taxpayer. Its aim is to provide taxation practitioners, superannuation professionals, small businesses and individuals with up-to-date, informative and above all understandable information about taxation – to ensure that every Australian pays the right amount of tax and not a cent more.