The Federal Government announced in the 2023-24 Federal Budget that it would increase cash flow and reduce compliance costs to small businesses by increasing the instant asset write-off threshold to $20,000 from 1 July 2023 until 30 June 2024.
Note that this measure is still not law.
The budget announcement was on 9 May 2023, almost 12 months ago….and it is still not law!
What is “instant asset write-off”?
Small businesses with an aggregated turnover of less than $10 million will be able to claim an immediate tax deduction for the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024.
Note that this threshold will apply on a per-assets basis, so small businesses can instantly write off multiple assets.
Assets that cost $20,000 or more can continue to be depreciated at 15% in the first year of purchase, being the 2024 financial year, and then 30% in each income year after that.
Should you require further information in relation to instant asset write-off, please feel free to contact Peter Quinn by submitting an enquiry or calling us on +61 2 9580 9166 to book an obligation-free appointment.
The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.