April 2025 update: What small business owners need to know about tax and accounting changes

📉 Instant asset write-off: Will it stay or go?

The $20,000 instant asset write-off has been a favourite for small businesses, letting you instantly deduct the full cost of assets (instead of depreciating them over time). But up until recently, it looked like this would drop back to a measly $1,000 from 1 July 2025.

Cue the backlash – and now the government has promised a 12-month extension. While that’s a relief, groups like CPA Australia say that businesses need long-term certainty, not year-by-year policies. Fair call.

Meanwhile, the opposition’s come out swinging with a promise to make the write-off permanent – and lift the cap to $30,000 for businesses earning up to $10 million. Some business groups reckon even that doesn’t go far enough and are calling for a $50,000 threshold.

No matter who wins the election, one thing’s clear: businesses want stability when it comes to tax incentives.

🏗️ Restructuring on the rise: Hospitality & construction hit hardest

Small business restructuring (SBR) is on the rise – tripling in the first half of this financial year. Instead of going straight to liquidation, more businesses are using SBR to stay afloat and restructure their debts.

Construction and hospitality are copping it the most. The construction industry is still reeling from COVID-era fixed-price contracts, supply chain issues, and inflation. And hospitality? They’re juggling rising costs, fewer customers (thanks cost-of-living crisis), and chronic staff shortages.

The upside? More business owners are getting professional help early, and it's saving jobs and livelihoods.

💸 COSBOA pushes for a tax cut to 20%

The Council of Small Business Organisations Australia (COSBOA) is calling on Canberra to drop the company tax rate from 25% to 20% for businesses turning over less than $20 million. Their message is simple: small businesses are doing it tough, and a tax cut would provide instant relief.

This push is gaining traction with the public too – 69% of voters say they support the idea, and in key marginal seats, that number jumps to 76%.

Small businesses make up nearly 98% of all businesses in Australia and pump $500 billion into the economy each year. COSBOA argues this tax cut would give business owners room to hire more staff, invest in their operations, and compete with bigger players.

⚠️ ATO debt and financial pressure mount

The ATO has stepped up its debt recovery game, tightening repayment plan rules. That’s putting extra pressure on businesses already dealing with inflation, higher wages, rising insurance premiums, and power bills.

But there’s a silver lining: well-prepared SBR proposals are still getting the nod from creditors – even the ATO. These structured plans are proving to be better alternatives to liquidation, helping businesses stay open and repay debts in a manageable way.

Final thoughts: Certainty matters

The key theme this month? Certainty.

From the asset write-off back-and-forth to calls for permanent tax cuts, small businesses just want clear, long-term rules so they can plan properly. With an election on the way, expect more noise – but hopefully some solid support too.

If you’re running a business, now’s the time to get across these changes, chat to your accountant, and think ahead. And hey – if Thriday’s part of your toolkit, you’ve already got a head start when it comes to staying on top of your tax and cash flow.

Need help staying across your finances? Thriday automates your bookkeeping, tax, and accounting – so you can focus on what matters: growing your business.