The uncapped Instant Asset Write-Off ends 30th June 2023. If you have been thinking of buying an asset for your business now is the time! But remember, you must ensure the asset is first used or installed ready for use by 30th June 2023 or you can’t claim it.
As announced in the latest Federal Budget, from 1 July 2023 until 30 June 2024, the Government will temporarily increase the instant asset write-off threshold from $1,000 to $20,000. This means businesses with turnover less than $10 million will be able to immediately deduct the full cost of eligible assets costing less than $20,000. The asset must be first used or installed ready for use between 1 July 2023 and 30 June 2024. The $20,000 threshold will apply 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. Depreciated at 15% in the first income year and 30% each income year thereafter.
If you have any queries regarding your eligibility or how the write-off works please contact our office.
