CPA Australia Business Investment Lead Gavan Ord says making the instant asset write-off permanent is a critical step toward giving small businesses the certainty they have long been calling for. 

“CPA Australia has consistently advocated for this measure to be made permanent, so today’s announcement is a very welcome development,” Mr Ord said. 

“For too long, small businesses have had to contend with year‑to‑year extensions and shifting thresholds, making it difficult to plan and invest with confidence. Locking in a permanent setting changes that.” 

The instant asset write-off allows eligible small businesses to immediately deduct the cost of assets up to $20,000, rather than depreciating them over several years, improving cash flow and reducing taxable income. 

Mr Ord said certainty is just as important as the tax benefit itself. 

“Small businesses don’t just need incentives – they need stability. When policy is predictable, businesses are far more likely to invest in equipment, technology and productivity improvements. 

“Making the write-off permanent removes unnecessary complexity and gives business owners a clearer runway to make long-term decisions,” Mr Ord said. 

Mr Ord said the measure will be particularly important in the current economic climate, where many businesses are facing higher costs and tighter margins. 

“This is a practical reform that will help businesses invest in their future, whether that’s upgrading technology, improving efficiency or expanding operations. 

Mr Ord said the focus should now turn to ensuring Australia’s tax and regulatory settings continue to support investment and productivity. 

“This is exactly the kind of policy that can help lift business confidence and support economic growth – but it must be part of a broader, stable framework that encourages long-term investment.”