Parliament has only four days to pass the instant asset write-off before July 1

Australian lawmakers have just four sitting days to legislate the instant asset write-off extension promised to small businesses for the 2023-2024 financial year, giving entrepreneurs precious little time to organise their tax affairs ahead of July 1.

As set out in last year’s federal budget, the extended instant asset write-off scheme will allow small businesses with a turnover below $10 million to claim an immediate tax deduction on eligible business expenses worth up to $20,000.

The federal government intended for that deduction to apply for expenses that occurred in the 2023-2024 financial year, and required legislation to put the measure into effect.

However, Coalition-led amendments in the Senate expanded the turnover threshold to $50 million, and bumped up the expense limit to $30,000, significantly expanding the number of potential claimants and eligible expenses.

Those amendments are yet to pass in the House of Representatives, with Treasurer Jim Chalmers accusing the opposition of obstructing the passage of a measure designed to help small businesses with their cash flow.

The Coalition has returned serve, with Shadow Treasurer Angus Taylor accusing the government of “standing in the way” of the well-liked tax measure.

Now, there are just four days remaining — June 24 to June 27 — for Parliament to lock down the instant asset write-off before June 30, the cut-off date for eligible expenses.

The last-minute approach to the write-off mirrors the events of 2023 when worried business owners endured an excruciating wait for the bill to pass into law.

Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.