Small businesses will have access to the instant asset write-off for another 12 months, after the policy, which was due to end at the end of this financial year, was extended to 30 June 2025 in the recent federal Budget.
Under the instant asset write-off, businesses with an aggregated annual turnover of less than $10 million can immediately deduct eligible depreciating assets costing less than $20,000, which are first used or installed ready for use by 30 June 2025.
The asset threshold applies on a per-asset basis, so businesses can write off multiple assets.
Assets can be new or second-hand. But some assets are not eligible, according to the Australian Taxation Office. They include:
Assets that are leased out, or expected to be leased out, for more than 50% of the time on a depreciating asset lease.
Assets you allocated to a low-value assets pool before using the simplified depreciation rules.
Horticultural plants, including grapevines.
Software allocated to a software development pool (but not other software).
Assets used in your research and development activities.
Capital works, including buildings and structural improvements.
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