CPA Australia has welcomed Liberal Party of Australia leader Peter Dutton’s promise to make the instant asset write-off permanent and increase the limit to $30,000 if it wins the Federal election, but says it should never have become a “political football”.

The announcement comes after the Federal government failed to address the future of instant asset write-offs in the recent Budget. As it stands, the current $20,000 measure will expire on July 1 and revert to just $1,000 for businesses with revenue up to $10 million a year.

CPA Australia CEO Chris Freeland said the coalition’s pledge to make the instant asset write-off threshold permanent at $30,000 is the right call for small business, but the business community should not be stuck in the middle of a political fight.

“The instant asset write-off provides a vital opportunity for small businesses to invest and grow. As a temporary measure only, it has not been utilised as much as it could have. Small businesses in particular need policy certainty to make informed investment decisions, especially when they involve significant financial commitments,” Freeland said.

“The practice of legislating this measure annually has created uncertainty and has discouraged investment at a time when many businesses are keen to take advantage of such incentives.

“The instant asset write-off has been a low-hanging fruit that small businesses have been hoping to utilise – but many have resisted because of the fear that it would be taken away. Businesses cannot operate like this.

“The instant asset write-off should have been made permanent in the Federal Budget – instead the business community was left to sit and wait even longer. This shouldn’t have become a political football.”

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