On 14 May 2024, as part of the 2024/25 Federal Budget, the government announced it would continue to extend the $20,000 instant asset write-off by a further 12 months until 30 June 2025.
This has not happened.
An agreement could not be reached on the threshold amount – the Coalition wanted it to be increased to $30,000 and the government was not willing to do this.
The sitting year for federal parliament has now ended with no certainty that the instant asset write-off will be extended at all. This is an incredibly disappointing outcome for small businesses who need consistency and predictability.
The write-off is an extremely useful tool for small businesses to upgrade their capital equipment and help boost productivity, its uncertainty is another challenge for South Australian small businesses to contend with.
At best, the write-off extension will be legislated before the next federal election. However, there is no guarantee of this and, even if implemented, it would leave little time for businesses to take advantage of it.
The South Australian Business Chamber, through its federal counterpart, the Australian Chamber of Commerce and Industry, will continue to advocate for the instant asset write-off to be made permanent, have the threshold increased to $50,000 and for it to apply to businesses with up to $50 million in turnover.
