The government announced in its budget 2017 on Tuesday night that it will extend the $20,000 instant asset-write off, which was due to expire on 30 June 2017, for one more year.
While this is widely considered the main win from the budget for SMEs, the impact of the $20,000 instant asset write-off extension has been “over-stated” according to Scottish Pacific CEO Peter Langham.
“While the instant tax deduction of up to $20,000 for capital expenses is a popular measure, it does not have the long-term positive impact that would come with an extensive SME tax and red tape overhaul,” Mr Langham said.
“Simplifying the complex tax system, getting rid of payroll tax and cutting red tape would have the biggest daily impact for Australia’s small to medium business sector.”
While there was some attempt to address the pressing issue of reducing red tape for the sector with the government announcing $300 million in funding to states that cut red tape to small business, Mr Langham said it’s not clear in detail how this would work or how effective it will be.