Parliament has recently increased the instant asset write-off threshold from $1,000 to $20,000 for the 2024 income year, allowing small businesses to fully deduct the cost of depreciable assets purchased between 1 July 2023, and 30 June 2024, in the year of purchase.
A small business may be able to write off purchases of depreciable assets made between 1 July 2023, and 30 June 2024, for less than $20,000 in the year of purchase. The tax deduction can be received in the year of purchase rather than over a longer period of time, which is a significant cash flow benefits years in question.
The asset must be used before it may be used or installed and operational for a taxable purpose from 1 July 2023 to 30 June 2024. For instance, a server needs to be delivered and setup; you cannot just have a receipt for it to be qualified to deduct the expense in 2024.
A small business entity may be able to deduct the whole cost of several assets over the course of 2024 if the cost of each asset is less than $20,000 because the write-off level is applied per asset. Now pending in Parliament is a bill to raise the instant asset write-off threshold until 30 June 2025.
Don’t miss this opportunity for significant cash flow savings—act now and invest in your business growth. Talk with our tax experts today.
