Publication date: 30 Jun 17 |
Source: THE TAX INSTITUTE
Date: 30 June 2017
While The Tax Institute supports the extension of the instant asset write-off to 30 June 2018, it warns small business taxpayers that they may get caught out if they don’t read the fine print.
Professor Robert Deutsch, Senior Tax Counsel at The Tax Institute says, “There is something very odd about the $20,000 small business instant asset write-off which has now been extended through to 30 June 2018. The oddity is that it is not actually a $20,000 write-off. The legislation actually speaks of amounts less than $20,000. Accordingly, an asset purchased for $20,000 will not qualify for an immediate tax write-off. On the other hand, if the invoice is for $19,999.99 it will qualify.”
“This has to be one of the most confusing outcomes that tax law has ever provided for and a small business taxpayer holding a legitimate $20,000 invoice would be justifiably aggrieved if denied the write-off. This is all the more so as the Government has at various times talked about the $20,000 immediate small business asset write-off”, says Professor Deutsch.
“It’s silly rules like this that cause people to lose faith in the tax system – it should be fixed!”, says Professor Deutsch.
For more information, please contact:
Professor Robert Deutsch, Senior Tax Counsel
Stephanie Conway, Media Relations Contact: 02 8223 0011
The Tax Institute is Australia’s leading professional association and educator in tax. Its 12,000 members include tax agents, accountants and lawyers as well as tax practitioners in corporations, government and academia. The Tax Institute supports the tax profession through education and professional development and works to continually improve tax law and its administration.