Immediate Asset Write-Off Mark 2

I take it all back!!!

Clive Palmer has just announced the instant asset write off of $6,500 stays or he wont support the repeal of the Mining Tax…

Without his three Senators the proposed reduction to the instant asset write-off for small businesses will not happen and so this write-off will stay at $6,500… And there will be an immediate write of of $5,000 for cars, and carry back losses will still apply, and the schoolkids bonus stays, and the low income superannuation contribution stays (this is effectively the refund of the 15% contribution tax for those with marginal tax rates less than 15%).

I might like some of these policies (love the low income super contribution and the high instant asset write-off) but when you are spending 10% more than you are making every year, decreasing your revenues by billions of dollars is not wise… But very popular.

Not wise but very popular… That might be a good description of much that goes for tax policy debate…

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About Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.
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