The instant asset threshold was raised from the previous $1,000 limit in May 2015 and will revert back on 30 June unless it is extended in the upcoming federal budget.
IPA chief executive officer Andrew Conway said the write-off initiative had been a great assistance to small businesses with a turnover of less than $2 million over the past two years.
“If this initiative reverts back to $1,000, there will be negative impact on the broader economy as the incentive for small businesses to reinvest in their future will be taken away, restricting potential growth, employment and prosperity,” Mr Conway said.
“The IPA had long advocated for the write-off initiative but unless the time limit is extended in the upcoming federal budget, the door will close on 30 June 2017 and the limit will revert back to $1,000.
“We are urging the government to keep this forward-thinking initiative alive come budget night.”
