27th Mar 2024, 5:25 PM – Senate Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 - Committee of the Whole - Small business instant asset write-off

The majority voted against amendments introduced by ACT senator David Pocock (Independent), which means they failed.

Amendment text

(1) Schedule 1, page 4 (line 1) to page 5 (line 4), omit the Schedule, substitute:

Schedule 1 — $20,000 instant asset write-off for small business entities

Income Tax Assessment Act 1997

1 Section 328-170 (paragraph (b) of the paragraph beginning "This Subdivision")

Repeal the paragraph.

2 Subsection 328-175(1)

Omit "(10)", substitute "(9)".

3 Subsection 328-175(10)

Repeal the subsection (not including the notes).

4 Subsection 328-175(10) (note 3)

Omit all words after "of this", substitute "Subdivision in relation to income years between 12 May 2015 and 30 June 2023".

5 Section 328-180 (heading)

Omit "$1,000", substitute "$20,000".

6 Paragraph 328-180(1)(b)

Omit "$1,000", substitute "$20,000".

7 Paragraph 328-180(2)(a)

Omit "$1,000", substitute "$20,000".

8 Paragraph 328-180(3)(a)

Omit "$1,000", substitute "$20,000".

9 Subsection 328-205(4) (example)

Repeal the example, substitute:

Example: When Hannah's van was allocated to her general small business pool for the 2023-24 income year, she estimated that it would be used 50% for her florist business. Due to increasing business, Hannah estimates the van's use to be 70% for the 2023-24 year, and 90% for the 2024-25 year. She makes an adjustment under section 328-225 for both those years.

Hannah sells the van for $20,000 at the start of the 2026-27 income year. She must now average the business use estimates for the van for the year it was allocated to the pool and the next 3 years to work out the taxable purpose proportion of its termination value. The average is worked out as follows:

The taxable purpose proportion of the van's termination value is, therefore:

75% of $20,000 = $15,000

10 Subsection 328-210(1)

Omit "$1,000", substitute "$20,000".

11 Subsection 328-210(3) (example)

Repeal the example, substitute:

Example: Alice's Landscaping is a small business entity for the 2023-24 income year and chooses to use this Subdivision for that year. The business has an opening pool balance of $25,000 for its general small business pool for that year.

During that year, Alice acquired a new car for $40,000. The taxable purpose proportion of its adjustable value is:

$40,000 x 80% business use estimate = $32,000

Alice also sold her truck for $39,600 during that year. The truck was used 100% in the business.

To work out whether she can deduct an amount under this section, Alice uses this calculation:

$25,000 + $32,000—$39,600 = $17,400

Because the result is less than $20,000, Alice can deduct the $17,400 for the income year. The pool's closing balance for the year is zero.

12 Subsection 328-215(4)

Omit "$1,000", substitute "$20,000".

13 Subsection 328-250(1)

Omit "$1,000", substitute "$20,000".

14 Subsection 328-250(4) (heading)

Omit "$1,000", substitute "$20,000".

15 Subsection 328-250(4) (note)

Before "or 328-181", insert "in relation to income years ending on or before 30 June 2023".

16 Subsection 328-253(4) (heading)

Omit "$1,000", substitute "$20,000".

17 Subsection 328-253(4) (note)

Before "or 328-181", insert "in relation to income years ending on or before 30 June 2023".

Income Tax (Transitional Provisions) Act 1997

18 Subsections 328-180(2) and (3)

After "of that Act", insert "(as in force immediately before its repeal by Schedule 1 to the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024)".