Accounting sector fears asset write-off Budget block
The accelerated depreciation write-off threshold of $20,000 is vital for boosting small business cashflow for accounting firms, which need the initiative extended for the new financial year in next month’s Federal Budget, according to the Institute of Public Accountants (IPA).
IPA chief executive, Andrew Conway, said accountants would face severe limitations if the $20,000 write-off were to be reversed.
“We are urging the government to keep this forward thinking initiative alive come budget night,” he said.
“The IPA had long advocated for the write-off initiative but unless the time limit is extended in the upcoming Federal Budget, the door will close on 30 June 2017 and the limit will revert back to $1000.”
Conway said entities with turnovers of up to $10 million would be able to avail themselves of the initiative if the amended Enterprise Tax Plan was passed by parliament. In addition, the initiative had brought forward the tax deduction that would in the past have been deductible over a number of years.
The IPA had called on small businesses to utilise the $20,000 instant asset write-off while it was still in play, and said the government would need to consider the broader economic implications of removing the initiative.
“If…this reverts back to $1000, there will be negative impact on the broader economy as the incentive for small businesses to reinvest in their future will be taken away; restricting potential growth, employment and prosperity,” Conway said.
“The increase in the accelerated depreciation write-off threshold to $20,000 has been a great assistance to small business.”
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