After some delay, the Government has officially passed legislation confirming the instant asset write-off threshold will increase to $20,000 for the 2024–25 financial year, ending 30 June 2025. This increase was first announced in the 2024–25 Federal Budget but faced legislative hurdles before becoming law.
This means that individuals and businesses with an annual turnover of less than $10 million can generally claim an immediate deduction for depreciating assets purchased during the financial year, provided the cost of the asset (excluding GST credits) is less than $20,000.
If you’re planning to purchase assets before 30 June 2025 to benefit from this immediate deduction, it’s important to understand the specific rules and conditions involved. There are several nuances and potential pitfalls, so we recommend reaching out to our team for personalised advice to ensure you maximise your tax benefits and stay compliant.
Be aware that this increased threshold is temporary, from 1 July 2025, the instant asset write-off is set to revert to $1,000 unless new legislation extends or modifies the threshold.
The instant asset write-off is a valuable tool for small and medium businesses to reduce their tax liabilities by immediately deducting the cost of eligible assets. To make the most of this opportunity before the threshold drops next financial year, contact our team for expert guidance.
Call us on 07 3367 3155 or email support@walkerhill.com.au to discuss how this can apply to your business.
