The instant-asset write off that was proposed in last year’s federal budget was finally passed into law yesterday, to apply for the current 2024 – 25 financial year.
South Australian small businesses with a turnover of less than $10 million can instantly deduct the full cost of eligible depreciating assets worth up to $20,000, if fully installed before the end of June this year.
The move is a welcome one for South Australian businesses, however any extension to the instant asset write-off was sadly missing from this week’s 2025 – 26 federal budget. We believe it should be made a permanent feature of the tax system and the investment threshold increased to $50,000.
Locking the write-off permanently into legislation would provide businesses with greater certainty around their budgeting process. It would act as an incentive to invest in asset upgrades, taking advantage of opportunities to purchase as they arise.
The passing of the legislation was initially promised in last year’s budget. It has been delayed from being passed until now, which has unfortunately left only a small window for businesses to take advantage of it.
