Parkes MP Mark Coulton has lashed out at the Labor government, this time targeting the changes he says they have made to the Instant Asset Write Off system, available to businesses to write off some of their tax bill.
Mr Coulton claims the government has introduced a more limited scope of eligibility for the Instant Asset Write-Off than was previously available under the Coalition government of which he was a member.
“The new limits on the Instant Asset Write-off have minimised its effectiveness, because a lot of the work done in agriculture needs those higher thresholds to remain in place. Many businesses across the electorate of Parkes will now be ineligible to access this assistance or won’t find it worthwhile given that many items of farm machinery for example cost beyond $20,000,” Mr Coulton said.
“I think this is another example of the importance of understanding how our local economies work, particularly in agriculture-based areas – something Labor just doesn’t seem to have a handle on.
“It needs major rethinking, much like many Labor policies.”
But the government claims their changes are a responsible and targeted way of supporting small businesses, as opposed to the former government’s scheme, which Minister for Small Business, Julie Collins, says would have cost the tax coffers an additional $20 billion.
“The Albanese Labor Government is making it easier for small businesses to invest and grow by providing a $20,000 instant asset write‑off for assets first used or installed ready for use between 1 July 2023 and 30 June 2024,” said Ms Collins.
“The $20,000 threshold will apply on a per asset basis, so small businesses can write-off multiple assets,” she told the Truth.
“This is estimated to provide around $290 million in cash flow support to small businesses with a turnover of up to $10 million.”
Labor’s changes to the Instant Asset Write-Off are on top of the targeted energy bill relief they plan to deliver to small businesses in the Budget, in partnership with states and territories, said Minister Collins.