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.
- 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.
- 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 |
- 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.
- 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.
- 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.
———————————————————————————————————————-
BOOK YOUR FREE 15 MINUTE CONSULTATION
We offer a 15-minute no obligation consultation to existing property investors, first home buyers and small business owners who are looking at property investments, business and asset protection.
Please complete the form and a member of our team will be in touch shortly- CLICK HERE TO BOOK YOUR FREE CONSULTATION
How can we help?
If you have any questions or would like further information or you are seeking property tax advice, please feel free to contact our office via email –info@investplusaccounting.com.au or phone 02 9299 7000 to either speak with someone or arrange a time for a meeting so we can discuss your requirements in more detail.
We have offices in Bankstown, Cronulla, Sydney CBD, Bowral, Liverpool, Adelaide, New Zealand and Dubai. You can arrange a free 15 minute no obligation chat to discuss your options. Please arrange an appointment with our office by clicking here
General Advice Warning
The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
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.
Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Investment Plus Accounting Group, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.