The Instant Asset Write-Off is a powerful tax incentive that allows eligible small businesses to immediately deduct the full cost of qualifying business assets, rather than depreciating them over several years. This can lead to significant tax savings and improved cash flow.

Let’s break down what’s new for the 2024–25 financial year and how your business can benefit.

  1. What’s New for 2024–25?

In May 2025, the Federal Government officially extended the Instant Asset Write-Off for another year.

Key Feature Details
Threshold $20,000 (excluding GST if GST-registered)
Timeframe 1 July 2024 – 30 June 2025
Applies Per Asset Yes – multiple assets can be claimed if each is under $20,000
Purpose Ongoing support to encourage investment in small businesses

This allows small businesses more time to plan and make strategic asset purchases before the EOFY.

  1. Who Can Claim the Instant Asset Write-Off?

To access the write-off, your business must meet all of the following:

Eligibility Criteria Requirement
Business turnover Less than $10 million (aggregated annual turnover)
Depreciation method Must use the simplified depreciation rules
Asset use Asset must be used or installed and ready for use by 30 June 2025
  1. What Kind of Assets Can You Claim?

You can claim both new and second-hand assets that are used for business purposes. Common examples include:

Examples of Eligible Assets
·       Office furniture
·       Tools and trade equipment
·       Laptops and desktop computers
·       Point-of-sale (POS) systems

Important: The asset must be installed and ready for use by 30 June 2025.

  1. What If an Asset Costs More Than $20,000?

Assets that exceed the $20,000 threshold don’t qualify for immediate deduction, but can still be depreciated.

Asset Cost What Happens
Over $20,000 Added to the small business depreciation pool
Depreciated at set ATO rates over time
Pool balance < $1,000 Entire remaining balance can be written off at the end of the financial year

This ensures you still receive a tax benefit, just spread over future years.

  1. Why This Matters for Tax Planning

Making use of the Instant Asset Write-Off can provide your business with significant advantages:

Benefit Impact
Reduce taxable income Pay less tax in the current financial year
Improve cash flow Retain more working capital
Invest in growth Acquire equipment and tools that help scale your business faster

Tips Before You Claim

  • Before making any asset purchases, keep these practical tips in mind:
  • Confirm that your business qualifies as a small business
  • Keep detailed records – invoices, proof of use, installation dates
  • Ensure the asset is installed and ready to use before 30 June 2025

The extended $20,000 Instant Asset Write-Off gives small businesses a valuable opportunity to save on tax and invest smartly. If you’ve been planning to purchase equipment, tech, or other business essentials, now’s the time to act.

EOFY is coming fast—don’t miss your chance to boost your business while cutting your tax bill!

tax adviser to implement the strategies that best suit your business needs.

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Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

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