House of Representatives

Treasury Laws Amendment (Increasing the Instant Asset Write-Off for Small Business Entities) Bill 2019

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Josh Frydenberg MP)

Chapter 3 Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Treasury Laws Amendment (Increasing the Instant Asset Write-Off for Small Business Entities) Bill 2019

3.1 This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview

3.2 This Bill amends the accelerated depreciation rules for eligible small businesses to increase the threshold to $25,000 for an immediate deduction for:

depreciating assets and amounts included in the second element of a depreciating asset's cost for the period from 29 January 2019 until 30 June 2020; and
general small business pools for income years ending on or after 29 January 2019 until 30 June 2020.

3.3 This will improve cash flow for small businesses, providing a boost to small business activity and investment for a further period.

3.4 During these periods, the $25,000 threshold is available to all small business entities (including those that previously opted out of the accelerated depreciation rules).

Human rights implications

3.5 This Bill does not engage any of the applicable rights or freedoms.

Conclusion

3.6 This Bill is compatible with human rights as it does not raise any human rights issues.


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