Regulation Impact Statement – The Treasury
As part of the 2015-16 Budget, the Treasurer announced accelerated depreciation arrangements for small business asset purchases of up to $20,000 in cost. Under these arrangements, small businesses will be allowed to immediately deduct assets costing less than $20,000 if they are acquired and installed ready for use after 12 May 2015 and before 1 July 2017. The measure will apply to small businesses with aggregate annual turnover of less than $2 million. These changes are intended to improve cash flow for small businesses and provide a boost to small business activity and investment. From 1 July 2017, the thresholds for the immediate depreciation of assets will revert back to existing arrangements. A Regulation Impact Statement (RIS) was prepared and certified by the Treasury under the Australian Government’s best practice regulation requirements, and has been assessed as compliant and consistent with best practice by the Office of Best Practice Regulation (OBPR). The RIS estimates that the measure will reduce regulatory costs on small businesses by $6.1 million a year for the two years the measure is in place by reducing record keeping costs. The OBPR has agreed to this estimate of regulatory savings.