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The Instant Asset Write-Off is a scheme offered by the Australian Government that allows eligible small businesses to immediately deduct the full cost of eligible assets from their taxable income in the year the asset is first used or installed ready for use. This can significantly improve a small business's cash flow.
Who is eligible for the Instant Asset Write-Off?
- Small businesses with an aggregated annual turnover of less than $10 million are eligible for the Instant Asset Write-Off.
- The $10 million turnover threshold can be based on the current year or previous year's figures.
What can be instantly written off?
- Assets costing less than $20,000 (including GST) each.
- This applies to multiple assets, so long as each individual asset stays under the threshold.
- Both new and second-hand assets can be claimed.
What are some things to consider?
- The $20,000 threshold applies on June 30th of each income year.
- Assets exceeding the threshold cannot be instantly deducted but can be placed in the small business simplified depreciation pool and depreciated over time.
- The scheme is currently available for assets first used or installed ready for use between 1 July 2023 and 30 June 2025 (subject to legislation passing).
Further information:
- Australian Taxation Office: Instant asset write-off for eligible businesses
- Australian Taxation Office: Small Business Support – $20000 instant asset write-off
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