The Australian Taxation Office (ATO) has released guidelines to help your business understand whether it’s eligible for the $20,000 instant asset write-off for the 2024-25 financial year.
“If your business has an aggregated annual turnover of less than $10 million and uses the simplified depreciation rules, you may be eligible to claim the instant asset write-off to immediately deduct the business part of the cost of eligible assets,” according to the ATO.
However, conditions apply:
- New and second-hand assets can qualify, although some exclusions and limits apply.
- Assets must be first used or installed ready for use for a taxable purpose between 1 July 2024 and 30 June 2025.
- The usual rules for claiming deductions still apply. You can only claim the business part of the expense, and you must have records to prove it.
The $20,000 limit applies on a per-asset basis, so you can instantly write off multiple assets as long as the cost of each asset is less than the limit.
With just one month remaining in the 2024–25 financial year, now is the ideal time to consider whether your business could benefit from purchasing eligible assets under the $20,000 instant asset write-off scheme.
If you’re planning to acquire any business equipment or assets, please Contact Us as soon as possible so we can ensure the timing and documentation align with the requirements. It’s important to remember that the asset must be first used or installed ready for use by 30 June 2025 to qualify.
Additionally, I strongly recommend speaking with your accountant or a qualified tax professional to confirm your business’s eligibility and to ensure you’re making the most of this tax incentive. Proper planning now can result in significant tax savings.