SMALL BUSINESS RELIEF: PEAK ACCOUNTING BODY CALLS FOR LONGER-TERM CERTAINTY AFTER $20,000 INSTANT ASSET WRITE-OFF EXTENSION

Chartered Accountants ANZ

Chartered Accountants Australia and New Zealand (CA ANZ) welcomes the Senate’s passage of legislation extending the $20,000 instant asset write-off for small businesses for the current financial year, but has renewed its calls for it to be made permanent to provide certainty and reduce red tape.

“This extension is a positive step, but the ongoing uncertainty around the instant asset write-off each financial year creates unnecessary uncertainty for small business owners,” said Susan Franks, CA ANZ Tax and Superannuation Leader.

“Since 2015 the instant asset write-off has been clouded with uncertainty, and extended by the government of the time, often in the last days of a financial year. It is encouraging that this latest extension for the 2025-26 financial year was able to pass in November, but a more concrete solution needs to be found.

“The instant asset write-off allows small businesses with annual turnover under $10 million to avoid identifying what purchases under $20,000 need to be depreciated and, if they find any, working out how they should be depreciated.

“The main benefit of this initiative is its immediate tax relief which can help with cash flow. Making the instant asset write-off permanent would deliver certainty and reduce red tape for business, government and tax agents.

“We’ve advocated, for some time, for policymakers to make the instant asset write-off permanent and with the government looking for ways to reduce red tape in the tax system for business, this would be a simple way to achieve this goal," said Ms Franks.

ENDS

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