The $20k threshold for instant asset write-off is back!
The instant asset write-off threshold was due to drop back to $1,000 from 1 July 2023. However, the Government has introduced a Bill to Parliament that contains amendments that ensure the $20,000 threshold will apply to small business entities for the 2024 income year.
How does it work?
- You must be a small business with an aggregated turnover of less than $10 million.
- The asset must cost less than $20k.
- The asset must first be used or installed and ready for use between 1 July 2023 and 30 June 2024.
- The simplified depreciation rules for the 2024 income year are applied to the asset.
- The instant write-off threshold applies per asset, so you may potentially apply the instant asset write-off to multiple assets, assuming each costs $20k or less.
What assets are eligible?
Everything! Assuming the asset is purchased for your business and falls within the criteria above.
How do I do it?
We look after this part for you!
For any assets you buy within the financial year, you will access an instant tax deduction, reducing your taxable income by the value of the asset.
Please note that this is not yet law.
