Today's announcement of an extension to the $20,000 instant asset write-off for tradespeople and small businesses is a welcome step towards greater certainty, but Chartered Accountants ANZ (CA ANZ) said it does not go far enough.
CA ANZ has been advocating for small business cash-flow certainty by making the instant asset write-off, and the associated threshold, permanent.
Susan Franks, CA ANZ Tax, Superannuation and Financial Services Leader said permanency would reduce red tape for business, government and tax agents.
"We included making the instant asset write-off permanent in CA ANZ's seven policy asks ahead of the 2025 federal election, and our pre-budget submissions, because it is a practical way to offer Australian small businesses improved financial security and certainty," Ms Franks said.
"Since 2015, the instant asset write-off initiative used by small businesses to claim a deduction for the cost of an asset has been clouded with uncertainty. It has been extended by governments in power at the time, again and again, often right before it's due to expire.
"The promise of another 12-month extension continues access to a crucial cash-flow tool, but it doesn't resolve the underlying issue of ongoing uncertainty for small businesses around this policy.
"The political debate about the instant asset write-off has moved on. Various independents and other parties are all calling for the instant asset write-off to become permanent. The debate is now focusing on the amount, which varies from $20,000, $30,000, and $50,000," Ms Frank said.
CA ANZ's seven policy asks can be viewed here.
