On 6 August 2018, the Australian Small Business and Family Enterprise Ombudsman: Kate Carnell, put out a media release, calling for (amongst other things) for the ‘instant asset write-off’ to be increased from $20,000 to $100,000 and that this be embedded in legislation (as opposed to simply being a temporary measure enacted only in the 1997 Transitional Provisions Act.
The media release stated:
Instant asset write-off
“We will speak about embedding the instant asset write-off in legislation and raising the threshold to at least $100,000. This initiative is important to their ability to continue to invest in their small business. Equipment used by some small businesses, including farmers, cost a lot more than the $20,000 currently on offer.
Ms Carnell was appearing at a public hearing (on 7 August 2018) of the the House of Representatives Standing Committee on Economics, Ms Carnell will emphasise one of the greatest impediments to investment by small businesses.
Amongst the other impediments mentioned were:
- Affordable capital for growth.
- Government ‘Red Tape’.
- Government sponsored ‘innovation programs’ allow too little time, at 12 to 18 months, to commercialise a product.
- Governments to pay quickly – 20 calendar day payment commitment for contracts welcomed and legislation for 30 day maximum payment time for all small business should be legislated.
- Fair Work Act complexities – creating a burden for employing people.
- Energy affordability – is a major concern.
FJM 21.8.18
[Small Business Ombudsman’s site: Media Release; LTN 150, 7/8/18; Tax Month – August 2018]
Comprehension questions (answers available)
- Has Kate Carnell called for the cost cap, on the ‘instant asset write-off’ to be increased five times (from $20k to $100k) and for it to be permanent?
- Did she do this anywhere important?
- Did she mention other impediments to small business?
