$20,000 Instant Asset Write-off Extended
Investing in a Future Made in Australia | Budget 2024-25
The Government has announced that it will extend the $20,000 instant asset write-off by 12 months until 30 June 2025. Small businesses with an aggregated annual turnover of less than $10 million will continue to be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use by 30 June 2025. The asset threshold applies on a per asset basis so small businesses can instantly write off multiple assets. Assets valued at $20,000 or more (which cannot be immediately deducted) can continue to be placed into the small business simplified depreciation pool and depreciated at 15 per cent in the first income year and 30 per cent each income year thereafter. The provisions that prevent small businesses from re-entering the simplified depreciation regime for five years if they opt-out will continue to be suspended until 30 June 2025.
The Senate have proposed to amend the bill to increase the asset instant write off from $20,000 to $30,000 while also increase the eligibility for business with an aggregated turnover of less than $10 million to $50 million. This bill with the proposed amendments remain stuck with the House of Representatives as at 6 June 2024 and is questionable whether it will pass legislation.
Recent Comments