Chalmers slams opposition over $20K instant asset write-off delay

Treasurer Jim Chalmers has blasted the federal opposition, accusing the Coalition of holding up the passing of the $20,000 instant asset write-off scheme, which has until June 30 to pass the legislature.

This amendment to the Income Tax (Transitional Provisions) Act 1997 is designed to improve cash flow and reduce compliance costs for Australian businesses with an annual turnover under $10 million.

The scheme has been around in different forms since 2015 and was extended in the 2024-25 federal budget, however, the same extension was handed down in last year’s budget and it is yet to become law.

Since then it has been stuck in amendment hell between the Senate and the House of Representatives.

The Coalition and the Greens are arguing for the scheme to raise the instant asset write-off threshold to $30,000.

The opposition previously passed these amendments ahead of this year’s federal budget.

As it currently stands the bill would provide businesses with an annual turnover of less than $50 million a 20% tax deduction on spending that supports electrification and energy efficiency. This would cover the 12-month period up until June 30, 2024.

“Grandstanding and delaying tactics”: Jim Chalmers speaks out against instant asset write-off delays in the Senate

The House of Representatives sent the bill containing the small business instant asset write-off and small business energy incentive back to the Senate on Tuesday evening.

This is the third time this has occurred since it was put before Parliament in September 2023.

With the deadline for the scheme fast approaching, Treasurer Jim Chalmers has now spoken out against the delays, placing the blame at the opposition’s feet.

“The only thing standing between small businesses and cashflow support this financial year is the grandstanding and delaying tactics of the opposition,” Dr Chalmers said exclusively to SmartCompany.

“Because of the opposition’s mindless division and delay, millions of small businesses could miss out on the instant asset write-off and the small business energy incentive for 2023-24.

“The opposition has once again shown its nasty negativity is no substitute for economic credibility.”

Small business minister Julie Collins supported Dr Chalmers, pointing to Labor’s $640 million of targeted support for small businesses in the budget.

“Australia’s small businesses deserve certainty. The opposition should stop delaying this important support for small businesses,” Minister Collins said to SmartCompany.

“While others keep playing politics, our Government will continue to deliver a better deal for small businesses.”

While there is one month to go until the bill amendment expires — and eight sitting days for the House of Representatives — both houses aren’t due to sit again until the final week of June.

As a best-case scenario, if it were to pass there would only be a handful of days for it to then receive royal assent and become law.

Steggall takes aim at both sides of the aisle

Independent member for Warringah, Zali Steggall, spoke out against the bill amendment stalling on Wednesday. Steggall has taken aim at both sides of the aisle, asking the government to approve increasing the threshold to $30,000.

According to Steggall, small businesses are being hurt by the delays.

“They make provisions, and then nothing happens. The legislation doesn’t pass either House and then they are left in the situation of not being able to do the measure that was promised by the government on budget night,” Steggall said.

“The reality is, you do not have majority in both places, and the majority in the other place has told you, loud and clear — has insisted — on returning this bill with an amended asset write-off to the $30,000.

“So the question to the government now is: are they going to continue to play politics and risk all small businesses?”

Steggall went on to state that the proposed $30,000 amendment is also important due to the energy incentive bonus, allowing small businesses to increase their sustainability as well as productivity.

“For the government, the question is: are they going to stand up for small businesses, or is it just tokenistic on budget night that they make an announcement and there’s nothing that comes with it,” Steggall said.

“For the opposition, the same goes. They voted against it when it came here before, then it got amended in the other place and has now come back. I note it was part of the budget in response speech, yet here we are.”