Instant asset write-off extended to 30 June 2025
As part of the 2024–25 Federal Budget and now legislated, the $20,000 instant asset write-off has been extended by 12 months, providing continued support for small businesses. Eligible businesses can now take advantage of the write-off until 30 June 2025.
What is the Instant Asset Write-Off?
The instant asset write-off allows eligible businesses to claim an immediate tax deduction for the business portion of the cost of an asset in the income year it is first used or installed ready for use.
The aim of the measure is to:
Encourage small businesses to invest in profit-generating assets
Help identify parts of operations that can become more efficient and profitable
Support cash flow by bringing forward tax deductions
The write-off can be applied to:
New and second-hand assets
Multiple assets, as long as the cost of each individual asset is below the $20,000 threshold
Who is Eligible?
To access the instant asset write-off, the business must:
Be a small business with an aggregated turnover of less than $10 million
Use the simplified depreciation rules
Eligibility and the ability to claim the deduction depend on:
Your aggregated turnover (includes connected or affiliated entities)
The date the asset was purchased
When the asset was first used or installed ready for use
The asset's cost being below the threshold
To qualify for the $20,000 threshold in the 2024–25 income year, businesses must:
Have aggregated turnover under $10 million
Apply the simplified depreciation rules
Acquire and use/install the asset between 1 July 2024 and 30 June 2025
📌 Note: The $20,000 limit applies on a per-asset basis, so businesses can instantly write off multiple assets under the threshold.
What If the Asset Is Over $20,000?
Assets costing more than $20,000:
Must be placed into the small business depreciation pool
Are depreciated at 15% in the first year and 30% in each subsequent year
Additionally, if a business’s pool balance is below $20,000 at the end of the 2024–25 income year, the full remaining amount can also be written off.
What Assets Are Eligible?
Under the simplified depreciation rules, most business-use depreciating assets qualify, including:
Office furniture and equipment
Computers and technology
Tools, machinery, tractors, and vehicles
However, some assets are excluded, including:
Assets leased out more than 50% of the time
Horticultural plants, such as grapevines
Software allocated to a software development pool
Assets used in Research & Development (R&D)
Capital works, including buildings and structural improvements
Need Help Navigating the Write-Off?
At Camphin Boston, we’re here to help you:
Identify eligible assets
Plan strategic purchases
Maximise your tax benefits before 30 June 2025
📞 Contact us today for tailored advice.