Instant-asset write off extended

The Albanese government will extend the $20,000 instant-asset write off program for another year if re-elected.

Farmers and small businesses will have the $20,000 instant-asset write off extended for another year should the federal Labor Party be re-elected.

Prime Minister Albanese announced on Friday that small businesses will be able to deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use by 30 June 2026.

Mr Albanese told ABC Sydney that the reason for only a one year extension, rather than longer, was to encourage small businesses to invest now.

“You create that economic activity and the multiplier that flows through immediately,” he said.

“Rather than say, ‘oh well don’t worry, sometime in the future, forever, you can do this’. We want to encourage that economic activity now from small business and tradies.”

National Farmers’ Federation president David Jochinke welcomed the announcement, though noted farmers would like it set at a “more meaningful level”.

National Farmers Federation president David Jochinke. Picture: Martin Ollman

“We asked for the write-off to be raised to $150,000 in our submission, but it’s good that both sides of politics recognise that this can help stimulate the economy and incentivise innovation in agriculture,” he said.

The extension applies to small businesses with an annual turnover of less than $10m.

The Coalition has said they will increase the write-off to $30,000 and enshrine it in legislation should they win the election.

This follows a fiery final sitting week in Canberra, where both Coalition and multiple crossbenchers called for the government to extend the policy, after no mention of an extension was seen in the federal budget.