What Is the Instant Asset Write-Off? The Australian Government is offering eligible small businesses the chance to immediately deduct the full cost of qualifying assets costing less than $20,000 (ex GST) for the 2024–25 financial year.
Who Can Access It?
- Small businesses with an aggregated annual turnover of less than $10 million.
- Assets must be first used or installed ready for use between 1 July 2024 and 30 June 2025.
How Does It Work?
- Instead of depreciating the asset over several years, you can claim the entire cost as a tax deduction in the same year it’s purchased.
- This reduces your taxable income, potentially saving you thousands at tax time.
Example:
Buy a new piece of machinery for $18,000 and use it before 30 June 2025. If your business tax rate is 25%, you could save around $4,500 in tax.
Eligible Assets May Include:
- Tools and equipment
- Office furniture
- Computers and laptops
- Business vehicles (under the threshold)
- Trade machinery
What’s the Benefit to You?
- Improved cash flow through tax savings
- Encouragement to invest in equipment that boosts productivity
- Simplified accounting with one-off deductions
Need Help Financing a Purchase? Many businesses don’t have the spare cash to buy outright. That’s where I can help.
As your local finance broker, I can:
- Find options for equipment finance
- Help you act fast to meet the 30 June 2025 deadline
- Ensure the asset is eligible and suits your business strategy
Let’s talk before tax time so you don’t miss out!