Bill Debate · Consideration in Detail
House of Representatives · Monday 10 February 2025
Official Hansard for this day (APH) · Read this debate on OpenAustralia
The debate centred on government amendments to extend the $20,000 instant asset write-off for small businesses to 30 June 2025. The Opposition moved amendments to increase the threshold to $30,000, make it permanent, and remove provisions denying deductions for general and shortfall interest charges, arguing these measures supported struggling small businesses. Independent member Zali Steggall proposed increasing the threshold to $50,000 to better reflect current costs and industry recommendations, a position supported by the Greens. Independent Monique Ryan raised concerns about luxury vehicle tax exemptions being used for non-commercial purposes. The government amendments were passed, while the Opposition and Independent amendments were defeated.
The government amendments were passed, while the opposition amendments and the independent amendment to increase the threshold to $50,000 were defeated.
Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.
Opened the debate
Jones moved government amendments to prolong the $20,000 immediate asset deduction for small business entities until 30 June 2025. The changes updated relevant sections of the Income Tax (Transitional Provisions) Act 1997 to reflect this extension. Jones presented a supplementary explanatory memorandum to accompany the bill.
Opposition response
Howarth moved opposition amendments to increase the instant asset write-off to $30,000 and make it permanent, while also removing Schedule 2 which denied deductions for general and shortfall interest charges. Howarth argued that denying these deductions was punitive and exacerbated financial hardship for small businesses facing high inflation and insolvencies. Howarth stated that the Coalition supported lower, simpler taxes and believed the $20,000 limit was insufficient given current economic conditions.
Bates sought clarification from Howarth regarding whether the opposition amendments removed Schedule 2 of the bill. Bates noted that Howarth had referenced the removal of Schedule 2 during the speech but wanted to confirm the scope of the amendments moved.
Steggall moved amendments to increase the instant asset write-off to $50,000 and make it permanent, citing data showing small business revenue declines and cash flow struggles. Steggall argued that $20,000 was insufficient to cover rising costs for goods, utilities, and sustainability investments such as solar panels. Steggall urged both the government and opposition to support the higher threshold to assist small businesses in planning and investing.
Watson-Brown supported Steggall's amendment to increase and extend the instant asset write-off. Watson-Brown highlighted the importance of small businesses to the economy and noted that many were struggling with inflation and interest rates. Watson-Brown argued that extending the write-off provided necessary certainty for investment and benefited communities and workers.
Ryan raised concerns about the misuse of luxury car tax discounts for utility vehicles purchased for non-commercial purposes. Ryan noted that nearly a quarter of vehicles purchased were light utility vehicles, exceeding the number of tradies in Australia. Ryan suggested excluding luxury utility vehicles from commercial exemptions to prevent inappropriate tax breaks for individuals.
Vamvakinou put the question on Steggall's amendment to the House. Vamvakinou declared that the noes had it, indicating the amendment was defeated. Vamvakinou then invited the minister to assist the chair with the proceedings.