As an accountant with more than two decades in the industry, I’ve seen just how powerful well-timed tax incentives can be for small businesses. One of the most valuable tools available to small businesses right now is the $20,000 instant asset write-off, which has been extended until 30 June 2025.
What is the $20,000 Instant Asset Write-Off?
The instant asset write-off allows eligible businesses with a turnover under $10 million to immediately deduct the full cost of an asset that costs less than $20,000. This can include equipment, tools, technology, or office furniture used for business purposes. The asset must be installed and ready for use between 1 July 2024 and 30 June 2025.
What Assets Qualify?
Common assets that qualify include:
- Computers and laptops
- Office furniture or fit-outs
- Tools and machinery
- Business-use vehicles under the threshold
Why This Matters for Small Business
This incentive is more than a tax perk — it’s an opportunity to invest in your growth. Benefits include:
- Improved cash flow
- Strategic upgrades to equipment
- Better tax planning opportunities
What Happens After 30 June 2025?
The threshold is currently set to revert to $1,000, so acting before the deadline is critical for maximising your deduction.
How We Can Help
We help you:
- Confirm asset eligibility
- Align asset purchases with your broader tax strategy
- Ensure compliance with ATO requirements
Need help planning for EOFY 2025? Contact us today for a personalised tax planning session tailored to your business.