Crossbench fury over delay in passing instant asset write-off

Laws enshrining an instant asset write-off of up to $20,000 for small businesses were set to pass the Senate after the Coalition and independents ramped up pressure on Labor.

Federal Treasurer Jim Chalmers during question time at Parliament House in Canberra. Picture: NewsWire / Martin Ollman

Laws enshrining an instant asset write-off of up to $20,000 for small businesses were set to pass the Senate on the last sitting day before the election, after the ­Coalition and independents ramped up pressure on Labor to make the support measures permanent.

After the sitting day scheduled for Thursday was scrapped and replaced with estimates hearings, independent MPs urged the Albanese government to pass legislation enshrining the instant asset write-off for this financial year.

Business leaders have also called on the government to extend the support measure to the next financial year, after Tuesday’s federal budget made no mention of the tax write-off scheme.

Jim Chalmers said on Wednesday in a post-federal budget address the measures had been delayed in passing the parliament because the legislation had been “held hostage to some Senate shenanigans”.

“We’re talking with the crossbench about that right now and I don’t want to drop them in it, but I had a conversation with a crossbencher this morning about it, and we know it’s an issue,” the Treasurer said. “In case we run out of parliamentary runway, we want to see that extended. That’s been our goal all along.”

A group of independent MPs, including Senate crossbenchers David Pocock and Jacqui Lambie, urged the Albanese government on Wednesday to pass the legislation that would enact the tax benefit for small business owners this year. The tax reforms bill containing the instant asset write-off provisions was set to go to a vote in the Senate late on Wednesday, under a guillotine motion that would see eight bills voted on in the last hours of the parliamentary term.

During a colourful final sitting day that saw Greens senator Sarah Hanson-Young brandish a dead salmon in the chamber during debate on environmental laws, Senator Lambie accused Dr Chalmers of falsely spreading that there was a feud with the crossbench over the write-offs.

“It seems that Mr Chalmers decided the Senate was blocking it and wasn’t letting it through – this absolute rubbish,” Senator Lambie said.

“So first of all, I worked out that Minister Chalmers is not so charming, and, secondly, he’s about as slippery as that stinky fish in Tasmania.”

Senator Pocock said he supported increasing the instant asset write-off to $30,000 and making the exception permanent. “I’m urging the government and the opposition to legislate this year’s $20,000 instant asset write-off. It needs to be $30,000, it needs to be higher,” he said. “Going forward, it needs to be permanent, to give small business certainty, but let’s bank the $20,000 this year for small business.”

Teal independents Allegra Spender, Zoe Daniel, Monique Ryan, Kate Chaney and Sophie Scamps also voiced support that the instant asset write-off laws be passed on Wednesday night.

Anthony Albanese said late on Wednesday that the government was close to sealing a deal in the Senate to pass the legislation, adding that the bill’s passage had been stalled because it didn’t have majority support in the Senate.

“One of the issues that happens in the Senate is that they often have held up our legislation for a long time,” he told the ABC.

“If they agree to pass it then they’ll get to do that tonight. My understanding is that is looking very positive.”

Opposition small business spokeswoman Sussan Ley criticised Labor for failing to extend the instant asset write-off into next year, meaning that the support measure that allows small businesses to instantly depreciate assets worth up to $20,000 will end on July 1.

“In stripping back the Instant Asset Write Off last night, Labor has raised a new tax on small businesses at the worst possible time,” Ms Ley said.

The Coalition has promised to increase the limit to $30,000.

COSBOA chief executive Luke Achterstraat said the saga marked a “watershed moment” in public perceptions about Labor’s commitment to providing small businesses certainty.