• Business community seeks commitment to make measure permanent   

• Long-term certainty is needed to drive investment 

• Labor vow lags Coalition promise 

CPA Australia today welcomed Labor’s pledge to extend the $20,000 instant asset write-off by 12 months, but noted the measure remained much too politicised. 

CPA Australia Business Investment Lead Gavan Ord said the pledge meant that SMEs with revenue up to $10 million a year would have 12 months of additional certainty. 

“We are pleased with the one-year extension, but this measure needs to be made permanent to encourage investment,” he said. “Long-term certainty is crucial for businesses, and the full potential of this policy to support smaller businesses will never be realised if it remains an annual measure. 

“In times of significant uncertainty, such as yesterday's US tariff announcement, businesses need the next government to adopt a long-term approach to providing incentives to the SME sector. 

“Businesses hit by yesterday's tariff announcements will be considering necessary investments to maintain profitability, such as diversifying their markets. A one-year extension to the regime is a step in the right direction but is still insufficient.” 

Mr Ord noted the Coalition had pledged to make the instant asset write-off measure permanent, with a higher cap of $30,000. 

“This measure is important enough that we think it deserves bipartisan support rather than being a matter of politics and election sweeteners,” he said.  

“CPA Australia and SMEs hope this is not the last of the small business announcements from the major parties during this election campaign. 

“Australian small businesses need a leg up to become more competitive and enhance their performance, particularly in technology adoption and business management skills.”