Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Instant asset write-off extension 'over-stated'

A debtor finance provider has commented that the $20,000 instant asset write-off, which is being hailed as one of the best parts of the budget for SMEs, has limited long-term benefit.

Tax&Compliance Lara Bullock 12 May 2017
— 1 minute read

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.

Advertisement
Advertisement

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.

Instant asset write-off extension 'over-stated'
image intro
accountantsdaily logo

The Accountants Daily 30 Under 30 Awards
This prestigious awards ceremony is the benchmark for excellence, recognising the industry’s most distinguished professionals, aged 30 and under across Australia, highlighting their outstanding achievements and dedication within the industry. Register to the waitlist today to be first in line for updates on when tickets to attend become available, visit accountantsdaily30under30.com.au to join the waitlist.

Tax&Compliance