The Albanese Labor Government is giving Australia's 2.7 million small businesses greater certainty to invest, grow and create jobs by making the $20,000 Instant Asset Write‑Off permanent.
Around 300,000 small businesses claimed the Instant Asset Write‑Off in the 2024-25 financial year, using it to invest in the tools, technology and equipment they need to grow.
The permanent write‑off means small businesses with annual turnover of less than $10 million will be able to immediately deduct the full cost of eligible assets valued at less than $20,000.
It can be used multiple times and could cover anything from new tools for a tradie and computers for a professional service, to machinery for a local manufacturer.
The measure applies on a per‑asset basis, allowing eligible businesses to immediately write off multiple purchases during the financial year.
The Instant Asset Write‑Off being made permanent, comes as new data shows more Australians are backing themselves and having a go in small business.
New ABS data released this week shows the economy added more than 85,000 businesses last financial year, almost all of them small businesses.
There are now more than 265,000 additional active small businesses than at the 2022 election, including growth of 15,600 businesses in construction, 12,100 in transport and 14,300 in healthcare.
That growth is also reflected in recent ASIC figures, with 44,040 new companies registered in July, the highest monthly number on record, following the previous record of 42,393 in June.
The Albanese Labor Government is the only government to have recorded more than 40,000 new company registrations in a single month, and it has now happened two months in a row.
Since Labor came to office, around 27,448 new companies have been registered every month on average.
Making the Instant Asset Write‑Off permanent is part of the Albanese Government's broader plan to back small business, boost productivity and give businesses greater certainty to invest.
Quotes attributable to Treasurer Jim Chalmers
"The instant asset write off is making a meaningful difference to hundreds of thousands of small businesses, that's why we're making it permanent for all 2.7 million eligible operators.
"This is all about slashing compliance costs for small businesses, saving operators hours of time on records and red tape and incentivising investment.
"Small businesses make a huge contribution to our country and our economy and we're backing them through the budget with more cost of living help, more tax breaks and support to scale up and grow.
"Whether it's the instant asset write off, the two‑year loss carry back, loss refundability, ensuring every small business is eligible for CGT concessions, or the $250 working Australians tax offset for sole traders, we're supporting small business operators by making life simpler and saving them money."
Quotes attributable to Minister for Small Business, Anne Aly
"Three hundred thousand claims show just how important the Instant Asset Write‑Off is to small businesses, and why this Government has made it permanent.
"Small businesses have told us they want certainty. A permanent $20,000 write‑off gives them the confidence to invest in the tools, technology and equipment they need to grow.
"Australia's 2.7 million small businesses are the heart of our economy and our communities. When they invest, grow and create jobs, the whole country benefits."
