The fate of the “Support for Small Business and Charities Bill” remains undecided in Parliament. This bill includes changes to the popular instant asset write-off program, alongside other support measures. Originally, the bill proposed a significant boost to the program. Businesses could deduct the full cost of eligible assets and improvements, up to a generous $100,000 limit, with a maximum deduction of $20,000.
While the “Support for Small Business and Charities Bill” awaits approval, proposed changes could significantly benefit small businesses. Senator Jane Hume’s amendments aim to raise the instant asset write-off threshold to $30,000 and expand eligibility to businesses with a turnover under $50 million (up from the initial $10 million). This would allow more businesses to deduct the full cost of qualifying assets for tax purposes.
The bill also offers a bonus tax deduction for eligible energy-saving investments for small and medium businesses (turnover under $50 million) in FY23-24. This 20% deduction aims to incentivize investments in electrification and energy efficiency.
However, the bill faces criticism for including a separate, controversial measure related to non-arm’s length income (NALI) for super funds. This provision exempts large APRA funds from NALI rules, while still applying them to Self-Managed Super Funds (SMSFs) with a cap. Industry groups like the Institute of Finance Professionals Australia (IFPA) argue that this non-business-related measure creates uncertainty for small businesses awaiting the bill’s passage.**
This rewrite focuses on:
Clarity for small businesses: Highlights the potential benefits like increased write-off threshold and eligibility.
Separation of concerns: Discusses the NALI measure separately and mentions the criticism it has received.
Flow and conciseness: Combines sentences and removes redundancy for better readability.
