Announced as part of the 2024-25 Budget, and now legislated, the $20,000 instant asset write-off limit has been extended for a further 12 months until 30 June 2025 to continue to provide support for small businesses.
What is the instant asset write-off?
The instant asset write-off enables eligible businesses to claim an immediate deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use. Access to the write-off is designed to incentivise businesses to invest in profit-generating machinery and equipment and encourage business to identify which parts of their operations would become more profitable by investing in the right assets.
The instant asset write-off can be used for:
- new and second-hand assets; and
- multiple assets if the cost of each individual asset is less than the relevant limit.
Who is eligible for the instant asset write-off?
To claim the instant asset write-off, a small business must use the simplified depreciation rules, and the write-off cannot be used for assets excluded from those rules. Eligibility criteria, the year in which you may use the instant asset write-off to claim an immediate deduction for an asset, and the threshold limits, have changed over time, and depend on:
