Small business ombudsman Kate Carnell says the Australian Tax Office should increase the instant asset write-off to $100,000.
The current limit for businesses to instantly write-off asset purchases is $20,000.
Carnell has told the House of Representatives Standing Committee on Economics that raising the current write-off threshold would make larger equipment purchases for businesses like farmers, retailers and manufacturers easier to manage.
Small businesses or individuals shopping for work vehicles such as vans, utes and passenger vehicles, and the imminent availability of zero-emission vehicles like Nissan Leaf, Hyundai Ioniq and the new Renault Zoe would welcome the increased write-off limit.
“What we suggest is that you can have $20,000 as often as you like, and then you can claim $100,000 once or twice for things like a ute, tractors or machinery for your small manufacturer,” Carnell tells SmartCompany, adding that with anything over the threshold “you have to depreciate it, which is just more red tape”.
The Small Business and Family Enterprise Ombudsman submission suggests raising the limit every three years, and making the instant write-off permanent, would be an innovative move ” of particular importance to their ability to continue investing in their business”.
The Liberal and National Parties have made extensions to the instant write-off rather than making it permanent.
The Greens supported the idea, as well as attempting their own legislation push in June which would’ve extended the limit to $30,000 for assets relating to renewable energy.
Labor has also backed increasing the threshold, as well as an instant 20% returned on an asset exceeding $20,000.
