The Australian Chamber of Commerce and Industry says the likely deferral of a vote on the Instant Asset Write-Off is a ‘poke in the eye’ for small business.

Australia’s largest and most representative business network said the measure, in which small businesses could write-off assets worth up to $20,000 to reduce costs will likely be deferred until next year.

The measure which was promised in this year’s budget has been one of the 27 pieces of legislation to be guillotined for a vote but the government and opposition cannot agree on the threshold.

ACCI has lobbied on behalf of small business to have the threshold increased to $50,000 and be made a permanent feature of the tax system.

The standoff means it’s almost certain to be deferred until next year, if parliament even sits before the election.

ACCI chief executive officer Andrew McKellar says the fact it has been kicked down the road is bad for small business.

“This is a real poke in the eye for small business as it means more uncertainty for business owners wanting to invest in new assets,” said Mr McKellar.

“The instant asset write-off has been a valuable measure for small business which encourages stronger investment and helps boost productivity.

“Small business needs certainty, it needs to plan in advance if it is going to able to take advantage of this.

“This is very similar to what happened last year when the bill was finally passed just days before it was due to expire.

“If the government is withdrawing this now, it creates uncertainty for small business and creates a wasted opportunity,” Mr McKellar said.