Small businesses around Australia need to make the most of the $20K instant asset write-off while it’s still there, according to the Institute of Public Accountants (IPA).

“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,” said IPA chief executive officer, Andrew Conway.

“The increase in the accelerated depreciation write off threshold to $20,000 has been a great assistance to small business cash flow.

“This initiative is bringing forward the tax deduction that would have been deductible over a number of years.

“Entities with turnover up to $10M can now also avail themselves of this initiative if the amended Enterprise Tax Plan is passed by Parliament when it next sits.

“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.

“We are urging the Government to keep this forward thinking initiative alive come Budget night,” said Mr Conway.