Member for Barker Tony Pasin has called on the Federal Government to grandfather the expanded instant asset write off and accelerated depreciation arrangements past June 30 for small businesses who have placed orders for plant and equipment but will not take delivery prior to this date.
Mr Pasin said substantial delays in production of vehicles, tractors and other equipment as a result of the pandemic were continuing, exacerbated by Australian quarantine arrangements with many assets held up in customs.
“Many small businesses made these investment decisions many months ago, in some cases over 12 months, on the assumption they could take advantage of the Federal Government’s expanded instant asset write off arrangements.
“These small businesses assumed they would take delivery of purchases prior to June 30 and circumstances beyond their control means they now will not,” Mr Pasin said.
“The Labor Government’s decision not to continue the expanded instant asset write off and accelerated depreciation arrangements is one thing, but the small businesses who entered into purchase agreements based on an understanding they would be taking advantage of these arrangements need to be cut some slack.
“Small businesses are doing it tough as the economy slows down, commodity prices drop, input costs rise and consumer spending declines.
“The last thing our farmers or tradies need right now is to miss out on an opportunity for deducting an asset because of delays out of their control.”
Mr Pasin and Shadow Federal Treasurer Angus Taylor visited Noel Barr Toyota last week where Dealer Principal Noel Barr said he had customers who had placed orders many months ago intending to take advantage of the expanded depreciation measures.
“I do not think anyone anticipated the continued delays that are being experienced and for our small business customers who placed orders months ago, making investment decisions based on these tax arrangements and expecting to take delivery this financial year, it’s unfortunate because it’s completely out of anyone’s control,” Mr Barr said.
