Business NSW is calling on the Commonwealth Government to make the instant asset write-off permanent in the upcoming Federal Budget, warning ongoing uncertainty is holding back investment, productivity and confidence for businesses across the New England North West.
Business NSW regional director for New England North West Stephanie Cameron said permanency would provide the certainty regional businesses needed to invest and grow with confidence.
“In regional areas like ours, businesses are already managing rising costs, workforce pressures and tight margins. What they need right now is certainty,” Cameron said.
“The instant asset write-off has proven to be an effective tool — but the stop-start nature of temporary extensions makes it difficult for businesses to plan ahead.”
Under the current temporary measure, small businesses with an aggregated turnover of less than $10 million can deduct the full cost of eligible depreciating assets costing less than $20,000 until 30 June.
Cameron said access to upfront investment in equipment, technology and machinery was particularly important for regional businesses looking to improve productivity and remain competitive.
“When businesses know the rules will remain in place, they are far more likely to invest — whether that’s upgrading equipment, adopting new technology or expanding their operations,” she said.
New England North West regional leader at Roberts + Morrow, partner Annette Aslin, said in regional areas, businesses don’t make investment decision lightly.
“Whether it’s a farmer upgrading machinery or a local tradesperson replacing equipment they need certainty to act. When the rules keep changing people hold back not because they don’t want to invest but because of the uncertainty around the impact of the investment on their cashflow and their business. A permanent instant asset write-off gives them the confidence to move when it makes sense for their business.” Aslin said.
“Right now, many are also dealing with rising input costs and seasonal pressures so easing the tax burden in a practical way helps free up cash and take some pressure off day-to-day decision-making,”
Business NSW research shows 45 per cent of small businesses with up to 20 staff have accessed the instant asset write-off and received a direct benefit, highlighting the importance of certainty in driving uptake.
“Nearly one in two small businesses are using this measure when it is available and clearly defined. That tells us it works,” Cameron said.
“Making the instant asset write-off permanent is a simple, practical reform that would deliver immediate benefits, particularly for regional economies like the New England North West.”
Cameron said that with businesses continuing to face rising operating costs, now was the time for meaningful tax reform that supported investment and long-term growth.
“We are seeing ongoing cost pressures across energy, insurance and compliance, which are already impacting business confidence and investment decisions,” she said.
“A permanent instant asset write-off would send a strong signal that government is serious about supporting business growth, productivity and regional economic resilience.”
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