On 7 August 2018, the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, called for the $20,000 instant asset write-off to be increased to $100,000. The scheme is currently available to small business entities with a turnover of less than $10 million.
Appearing before the House of Representatives Standing Committee on Economics, the Ombudsman made the recommendation alongside calls for other measures aimed at alleviating key impediments to business investment, such as onerous red tape and regulation and confusion around core pieces of legislation such as the Fair Work Act.
The proposed extension of the instant asset write-off would enable eligible entities to deduct the entire cost (up to $100,000) of key equipment in the year in which the expenditure is incurred, rather than over the course of its usable life under the regular asset depreciation rules. For smaller businesses, this has obvious benefits in the form of providing an immediate deduction for purchases.