Other groups also back calls to lock in and expand the scheme to support small business investment
The Mortgage & Finance Association of Australia (MFAA) has renewed its call for the federal government to legislate a permanent and more generous instant asset write-off scheme, saying small businesses need certainty to make long-term investment decisions.
“Our members increasingly support small business customers with their commercial lending and asset finance needs,” the MFAA said in a statement. “Small businesses, including our members, need certainty so they can plan for the long term.”
The association joins the Commercial and Asset Finance Brokers of Australia (CAFBA) and the Council of Small Business Organisations Australia (COSBOA) in urging a higher threshold and a permanent framework for the tax break, which allows small businesses to claim an immediate deduction for eligible asset purchases.
“The permanency of the instant asset write-off is something we called for in our pre-budget submission to give certainty to our members in the commercial and asset finance space and to their clients as well,” said Anja Pannek (pictured above), MFAA chief executive, in an earlier statement. “We will continue to work closely with all sides of government to advocate for our members and the mortgage and finance broking industry.”
Meanwhile, small businesses in the building and construction sector have welcomed the Albanese government’s election pledge to extend the $20,000 instant asset write-off to June 30, 2026 — but are calling for more.
“Both major parties have committed to the instant asset write-off and acknowledge the support this provides for small businesses to grow and invest in their business,” said Master Builders Australia chief executive Denita Wawn.
“It is disappointing the Australian Labor Party hasn’t matched the $30,000 commitment from the Coalition and to make the scheme a permanent fixture, instead relying on Parliament passing new legislation each year, which creates a great deal of uncertainty for businesses that need time to make investment decisions.”
The instant asset write-off is available to businesses with turnover under $10 million and applies to both new and second-hand assets, provided each item is under the threshold. However, eligibility criteria and thresholds have changed frequently in recent years. From July 1, 2023 to June 30, 2025, the threshold is $20,000. From July 1, 2021 to June 2023, it was $1,000. Between March 12, 2020 and June 30, 2021, it was $150,000. Prior to that, from April 2, 2019 to March 11, 2020, the threshold stood at $30,000. Industry groups argue this inconsistency makes it harder for businesses to plan and take advantage of the tax break.
The Coalition has committed to a more expansive policy if elected, promising to raise the threshold to $30,000 and make the scheme permanent.
MFAA and other advocates say locking in the scheme at a higher limit would better support business investment and boost economic activity, particularly in sectors like finance and construction that depend on equipment purchases and asset upgrades.
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