Tuesday’s federal budget saw the extension of the instant asset write-off scheme for another year, until 30 June 2025.
Businesses with an annual turnover of less than $10 million can use the write-off for assets up to the value of $20,000 and claim a full, immediate tax deduction. The government believes this will provide $290 million in cash flow support to small businesses nationwide.
For the current financial year, this applies to assets that are first used, or installed and ready to be used between 1 July 2023 and 30 June 2024. This scheme will run to 30 June 2025 with the extension.
The instant asset write-off applies on a per asset basis, meaning businesses are able to write off as many eligible assets as they can.
The opposition has called for the annual turnover threshold to be lifted and the write-off amount to be raised to $30,000, but has also said that even if these changes are refused by the government the existing write-off scheme extension will be supported and passed before 30 June 2024.
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For specific advice, please see a tax professional.
