The $20,000 Instant Asset Write-Off Is Extended!

If you’ve been thinking about upgrading your tools, replacing tired equipment, or investing in your business, now’s a great time to do it. The Government has extended the $20,000 Instant Asset Write-Off until 30 June 2025, with the legislation receiving Royal Assent on 28 March 2025.

Who’s Eligible and What’s Covered?

The write-off is available to businesses with an annual turnover of less than $10 million. You can claim the full cost of eligible depreciating assets, provided each item:

• Costs less than $20,000 (excluding GST)

• Is used or installed ready for use between 1 July 2023 and 30 June 2025

  
  

This deduction applies on a per asset basis, which means you can claim multiple assets—if each individual asset is under the $20,000 threshold.

Common eligible assets include:

• Tools and machinery

• Computers, monitors, and laptops

• Office furniture and fittings

• Equipment for business use

  
  

If an asset costs $20,000 or more, it won’t be eligible for the instant deduction. Instead, it must be added to your small business depreciation pool, which spreads the deduction out over several years.

Things to Consider

To benefit from the write-off, it’s important to ensure that:

• The asset is used or installed and ready for use within the eligible timeframe

• Accurate records are kept for all purchases

• The asset is being used primarily for business purposes

  
  

Tip: Tax rules can work differently depending on your business type or industry. It’s always worth checking wit a tax professional to make sure you’re claiming things the right way.

The Instant Asset Write-Off is a great way to make your business purchases work for you at tax time. And now that it’s been extended until 30 June 2025, you have more time to plan and make smart decisions.

If you would like clarity on eligibility, record-keeping, or how to apply the deduction correctly, please feel free to book a call with us.

Disclaimer: This article is intended to provide general guidance and is not specific advice. We encourage you to seek tailored advice for your circumstances.