The government has extended the instant asset write-off through 2019, which allows small businesses to claim depreciation on new equipment to the value of $20,000 immediately rather than having to write it down over several years.
Andrew Macaulay, CEO of Printing Industries, said it was positive that the bill had received broad support in both the House and the Senate, but further action needs to be taken. "Small business is the backbone of the country and accelerated depreciation is an important measure in helping business to invest and grow," he said. "We call on the Government to end the annual uncertainty associated with renewing the write-down and to do the right thing to support business by making it permanent."
Macaulay has also called on the government to lift the $10m threshold, allowing more businesses to take advantage of the scheme; index the $20,000 writeoff amount to account for inflation; and bring forward already-passed tax cuts for small, medium and family businesses. "It is critical that Government policy helps our sector to grow and prosper, so Australians can have the jobs, living standards and opportunities to which they aspire. Many PIAA members have used the instant asset write-down over the past few years to purchase machinery and other plant equipment. It is a great cost-saver for print and packaging businesses," he said.
"Print and packaging businesses need certainty and policies that will support their ability to grow, hire and invest."
The bill passed through Parliament with no amendments, despite Greens Senator Nick McKim's proposal to lift the amount to $30,000 for assets related to clean energy or energy efficiency. "It’s good to see a politician endorsing a policy PIAA wrote to Parliament about, seeking extra money for energy abatement and renewal technology," said Macaulay. "We would encourage this above the continuation of the $20,000 write-off, which is good news for small business."