Aspen Corporate Pty Ltd
$20k instant asset write-off passes Parliament
Aspen Corp • 2 July 2024

$20k instant asset write-off passes Parliament

Legislation increasing the instant asset write-off threshold from $1,000 to $20,000 for the 2024 income year passed Parliament just 5 days prior to the end of the financial year.


Purchases of depreciable assets with a cost of less than $20,000 that a small business makes between 1 July 2023 and 30 June 2024 can potentially be written-off in the year of purchase. It’s a major cashflow advantage because the tax deduction can be taken in the year of purchase instead of over a number of years.


To be eligible, the asset must be first used, or installed ready for use, for a taxable purpose between 1 July 2023 and 30 June 2024. For example, you cannot simply have a receipt for an industrial fridge, it must have been delivered and installed to be able to claim the write-off in 2024. 


The write-off threshold applies per asset, so a small business entity can potentially deduct the full cost of multiple assets across the 2024 year as long as the cost of each asset is less than $20,000. A Bill to extend the instant asset write-off threshold increase to 30 June 2025 is currently before Parliament.


If you would like further information, or support with a recently acquired asset, contact your Aspen Corp advisor today.


Find out more about instant asset write offs:

https://www.aspencorp.com.au/resources/reading_room/news_archives/_20k_accelerated_deductions_for_small_business_extended_another_year

https://www.aspencorp.com.au/the-essential-30-june-guide


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