The Morrison Government has announced it will extend the $150,000 instant asset write-off until December 31.
Australian businesses with an annual turnover of less than $500 million will be able to access the cash-flow boost to support themselves as COVID-19 restrictions slowly ease.
The measures are estimated to help 3.5 million businesses across Australia.
In a statement the government said that the extended support will help businesses acquire new assets.
"The instant asset write-off helps to improve cash flow for businesses by bringing forward tax deductions for eligible expenditure.
"The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided each costs less than $150,000.
"The extension will also give businesses additional time to acquire and install assets, as they will now have until the end of the year.
"Assets can be new or second hand and could include for example a truck for a delivery business or a tractor for a farming business.
"Legislative changes will be made to give effect to this measure, which is estimated to have a cost to revenue of $300 million over the forward estimates period," the government said.