Uncertainty over instant asset write-off leaves SMEs and accountants in the lurch

The end of the financial year is fast approaching and accountants are finding it difficult to advise small businesses about the instant asset write-off scheme – which continues to plague both houses of parliament.

A quick catch-up on the instant asset write-off drama

A 12-month extension of the $20,000 instant asset write-off was a key measure in the 2023-24 federal budget and is designed to help SMEs by allowing them to claim an immediate tax deduction for eligible purchases.

However, the scheme’s future remains uncertain as the bill amendment is stuck in legislative limbo.

The federal government is still yet to pass the bill amendment with only a handful of parliamentary sitting days left before June 30 when the extension to the write-off would in fact end.