Chartered Accountants Australia and New Zealand, Corporate Tax Association, CPA Australia, Institute of Public Accountants, Law Council of Australia and The Tax Institute (the Joint Bodies) wrote a letter to Treasury outlining observations on the first COVID19 stimulus package.
Observations in relation to the instant asset write off include:
- There is an issue as to whether the Instant Asset Write-off works as intended for taxpayers with Substituted Accounting Periods
- Deteriorating business conditions mean that the requirement that an asset be ‘Start to use or installed ready for use’ before the cut off date will be difficult to meet. Alternative suggestions are made.
Observations in relation to cash boost include how difficult it will be for new businesses to access.