The balance would be depreciated in line with normal depreciation schedules after the first year.
Labor announced the investment guarantee a year ago when it was resisting company tax cuts for big businesses. The government has since dropped its plans for larger corporate tax cuts and both parties now agree on the current position in which businesses with turnovers capped at $50 million will have a 25 per cent corporate income tax rate by 2020-21.
Labor ‘means a recession’
Unless the government matches the investment guarantee before the election, Labor will go to the polls promising greater overall tax relief for business.
Mr Morrison announced the extension of the instant asset write-off scheme in his first major economic speech for the year on Tuesday, in Brisbane.
In the same speech, he promised to create 1.25 million jobs over five years, double that number over 10 years and to also eradicate net debt within a decade. Net debt has blown out under the Coalition and is currently $352 billion.
Seeking to make economic management the defining issue of the federal election, Mr Morison devoted much of the speech to warning against a return to Labor by issuing a veiled warning of the risk of recession.
Senior minister Christopher Pyne was more blunt, saying a Shorten government “means a recession in Australia”.
On Tuesday, both Mr Morrison and Finance Minister Mathias Cormann shied away from backing the recession claim, contending only that the economy would be weaker under Labor.
‘An increasingly desperate government’
Opposition leader Bill Shorten said the Coalition had become desperate by resorting to such language.
“I say to Australians, get used to the fact that an increasingly desperate government with barely months left in their term of office, are going to start trying to scare people more and more,” he said.
On Tuesday, the first Newspoll for the year showed a slight improvement in the government’s fortunes but it was still trailing Labor on a two-party preferred basis by 53 per cent to 47 per cent.
The NAB business confidence survey showed conditions have experienced their steepest monthly fall since the global financial crisis.
When asked, Mr Morrison agreed “most” of the new jobs he has promised would be full time.
Mr Bowen said the Prime Minister was misleading.
“Of the jobs created in the economy over the last five years, only 55 per cent of those (676,000) have been full-time jobs,” he said.
“Morrison’s 1.25 million full-time jobs pledge would require employment growth to reach and remain at 3.25 per cent. The most recent budget update had employment growth forecast to be 1.75 per cent in 2018-19 and 2019-20, before dropping to 1.5 per cent for the following two years.”
from A Viral Update http://bit.ly/2SeIHOO
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