MTA Queensland has welcomed the Federal Government’s decision to make the $20,000 instant asset write-off permanent, saying the measure will provide greater investment certainty for small automotive businesses.
The measure was announced as part of the 2026-27 Federal Budget and received Royal Assent on August 26. It applies from July 1, 2026, alongside the reintroduction of a two-year loss carry-back provision.
Under the permanent instant asset write-off, eligible small businesses with aggregated annual turnover below $10 million can immediately deduct the business portion of eligible assets costing less than $20,000.
Importantly for workshops regularly purchasing tools and equipment, the $20,000 threshold applies on a per-asset basis, allowing multiple qualifying assets to be written off during a financial year.
MTA Queensland Group CEO Rod Camm said making the scheme permanent would remove the uncertainty created when businesses had to wait to discover whether the write-off would be extended.
“Automotive businesses are continually investing in the tools, equipment and technology required to remain productive, competitive and capable of servicing an increasingly sophisticated vehicle fleet,” Camm said.
“Making the instant asset write-off permanent gives business owners the certainty needed to plan these investments with confidence, rather than waiting each year to see whether the measure will be extended.”
Camm described the change as a significant win for Queensland’s automotive industry, where small businesses make up a substantial part of the sector.
The Federal Government has also legislated the return of a two-year loss carry-back provision for eligible companies.
The measure allows losses to be carried back against tax paid during previous profitable years, potentially providing cash-flow relief during periods of rising costs, significant capital expenditure or difficult trading conditions.
“The ability to carry losses back against tax paid in previous profitable years can provide valuable cash-flow relief, helping businesses navigate challenging periods while continuing to invest in their people, equipment and operations,” Camm said.
MTA Queensland believes the combination of the two measures will give automotive businesses greater flexibility to manage changing economic conditions while encouraging continued investment.
“Together, these initiatives provide greater certainty to invest and additional flexibility to manage changing business conditions,” Camm said.
“They represent a positive step forward for small businesses across Queensland’s automotive industry.”