Take Advantage of the $20,000 Instant Asset Write-Off

Have you recently acquired or improved a business asset? If your business’s total annual turnover is below $10 million, you may qualify to fully deduct the cost of eligible assets valued under $20,000 through the instant asset write-off (IAWO).

Key Details:

• Eligibility Period: Assets must be first used or installed between 1 July 2024 and 30 June 2025.

• Per Asset Basis: The $20,000 limit applies to each asset, allowing you to write off multiple assets instantly.

• Improvements: You can also write off the cost of improvements under $20,000 made to assets written off in a previous year if incurred between 1 July 2024 and 30 June 2025.

• New and Second-Hand Assets: Both qualify, but some exclusions and limits apply.

Depreciation Rules:

• Standard Rules: You can only claim the business portion of the expense and must keep records to prove it.

• Assets Over $20,000: These can be added to the general small business pool and depreciated at 15% in the first year and 30% in subsequent years.

Additional Deductions:

• Small Business Energy Incentive: You may be eligible for a bonus deduction for the same assets in the 2023-24 income year.

• Skills and Training Boost: You might also claim a bonus deduction for training expenses for your employees.

Importance of Record-Keeping:

Maintaining accurate records is crucial to determine your claim and provide evidence if required. For more information, see Record keeping for business.

For personalized advice and assistance with your claims, please contact us.