We are excited to share that a new Bill has been introduced in Parliament: the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025. This critical legislation proposes a range of changes that are expected to benefit small businesses, publicly listed companies, and the not-for-profit sector. A significant highlight is the proposed continuation of the $20,000 instant asset write-off, which, if passed, would be extended until 30 June 2026.
Empowering Small Businesses: Extension of the $20,000 Instant Asset Write-Off
Should this Bill receive approval, small businesses with an aggregated annual turnover of less than $10 million will be able to immediately deduct the full cost of eligible assets valued at up to $20,000 (excluding GST). This extension, valid through 30 June 2026, offers a tremendous incentive.
It is essential to note that the threshold applies to each asset individually, meaning that multiple purchases can qualify as long as each item remains within the specified limit. To access this beneficial deduction, eligible assets must be utilised or installed in readiness for use by the new deadline.
This incentive remains one of the most straightforward and practical tax benefits available to small businesses. It provides immediate cash flow benefits by allowing companies to claim the full deduction in the year of purchase, rather than spreading depreciation over several years, contingent on having an actual tax obligation for that year. For instance, a tradesperson upgrading their tools or a café investing in a new refrigerator or coffee machine can instantly claim the full deduction, thereby freeing up precious cash for reinvestment in other areas of their operations.
Though the proposal still awaits parliamentary approval, now is an opportune moment to begin strategising. Suppose you are considering acquiring new equipment or upgrading technology. In that case, early budgeting is vital to ensuring that assets can be delivered and installed before the cut-off date after the law is enacted.
Enhancing Corporate Disclosure for Greater Market Clarity
The Bill also seeks to implement more rigorous disclosure regulations for listed companies. Proposed amendments to the Corporations Act 2001 would mandate the disclosure of equity derivative interests—such as options, swaps, and short positions—under the substantial holding framework. These reforms are designed to enhance market transparency and minimise the likelihood that significant shareholdings or control interests remain obscured.
For listed entities, this will necessitate heightened compliance obligations and may require enhancements to internal monitoring and reporting systems. Investors with substantial stakes in listed companies should take this time to reassess their current arrangements and ensure alignment with future compliance expectations.
Increasing Transparency and Trust for Charities
For the not-for-profit sector, the ACNC Commissioner would receive enhanced authority to publicly disclose “protected information,” including investigation details that meet a public harm criterion. This initiative aims to bolster public confidence in the charity sector by demonstrating that regulatory actions are being taken in response to misconduct.
For well-managed charities, this enhanced transparency fosters greater community trust while simultaneously underscoring the critical need for solid governance, diligent record-keeping, and compliance processes.
Streamlining Financial Regulator Reviews
Lastly, the Bill proposes to extend the review frequency of ASIC and APRA by the Financial Regulator Assessment Authority from every two years to every five years. While this adjustment is primarily administrative, it reflects a move toward more streamlined regulatory oversight, allowing regulators to concentrate on their core functions.
What Actions Should You Consider Now?
While these proposals are still subject to parliamentary approval, it is prudent to begin planning. For small businesses, now is the time to evaluate your capital expenditure requirements for 2025-26 and ensure that any scheduled purchases are installed and operational by 30 June 2026 to benefit from the upfront deduction. For charities and listed entities, we encourage you to review your governance and reporting frameworks in preparation for the upcoming transparency requirements.
We are committed to keeping you informed as the Bill progresses through Parliament. In the meantime, please reach out to us if you want to discuss how these proposed changes might affect your business or investment strategy. Your success is our priority, and we look forward to assisting you!