CA ANZ urges write-off action prior to June 30

As per CA ANZ, the immediate deduction will boost cash flow and simplify tax compliance, helping businesses invest more confidently in the equipment and technology needed to drive productivity and growth. 

As previously reported by Accountants Daily, major accounting bodies in Australia had welcomed the move as a long-awaited reform that would provide greater clarity for businesses planning future investments.

CA ANZ Australian tax leader Susan Franks said that making the IAWO permanent represents a significant step forward after years of advocacy. 

“This is exactly the kind of practical reform we’ve been advocating for. It cuts red tape and lets businesses focus on running and growing their operations, not second-guessing the next budget,” she said. 

“If businesses want to take advantage of this tax break this year, they need to act now. Assets must be in use or ready for use before 30 June to qualify.”

“This is a simple and effective way to improve cash flow, but timing matters.”

The IAWO allows eligible businesses to claim an immediate deduction for assets costing less than $20,000, with the threshold applying on a per-asset basis rather than as a total annual cap. 

Assets must be used or installed and ready for use before 30 June to qualify for the current financial year. 

Both new and second-hand assets are eligible, and businesses can claim multiple assets provided each falls below the threshold. 

The measure has been the subject of ongoing debate within the profession. 

As reported by Accountants Daily, experts across the profession have warned that ongoing changes to the duration and thresholds for write-offs have reduced their effectiveness, as uncertainty around the measure has discouraged businesses from making strategic investment decisions. 

Under the measure, businesses can claim an immediate tax deduction for eligible assets such as tools, computers and vehicles used for business purposes, instead of spreading the deduction over multiple years through depreciation. 

Franks said making the measure permanent would give businesses greater certainty and confidence when planning future investments. 

“Years of last-minute extensions and shifting thresholds have created real planning uncertainty for businesses. Permanency fixes that,” Franks said. 

“Businesses should talk to their chartered accountant now to make the most of this before 30 June.”

“It's a simple, effective measure, exactly what the economy needs right now.”