(2 April 2025 – Australia) The Coalition has confirmed it will legislate a permanent Instant Asset Write-Off provision up to A$30,000 if elected on 3 May.
Shadow Assistant Treasurer Luke Howarth slammed the ALP’s decision to exclude the instant asset write-off (IAWO) measure from the 2025/26 federal budget.
Businesses were scrambling after being informed they only had until the end of financial year 2024/25 to qualify for the higher A$20,000 threshold before it potentially dropped to a mere A$1,000, however Labor has now announced it will extend the IAWO provision for SMEs with revenue up to A$10 million by an additional 12 months.
CPA Australia and CA ANZ stated that while the one-year extension was welcome, they stood by their view that the measure should be permanent and not politicised.
“The fact that the government has left the IAWO measure out of the budget for the 2025/26 financial year is unacceptable. We will make it permanent at A$30,000 if elected. During Covid it was unlimited and we saw some really good outcomes” Howarth said at the IPA and Canberra Business Chamber’s Budget Review event Miranda Brownlee reports for Accountants Daily.
Shadow Treasurer Angus Taylor also asserted that the Coalition would cut red tape for small businesses and introduce a bill to make Australia a financial centre for the region.
“This Bill will legislate key financial services reforms that Labor has failed to prioritise – ranging from payments system reforms, digital assets regulation, and restoring our financial advice profession.”
“Our financial system is the nervous system of our economy. At its best, it supports Australians to fulfil their dreams and realise their aspirations. This will unlock our financial sector and make it easier for Australians to afford a home, plan their retirement, and start a business.”
“A permanent and higher Instant Asset Write Off and Simpler Meal Tax Deductions will support small businesses recovery and give 98 percent of Australian businesses a tax cut when they invest in productive assets,” he said.