Instant asset write-off threshold confirmed
It has been a long time coming, but the Government has finally passed legislation for the instant asset write-off threshold. They will increase the instant asset write-off threshold for the year ending 30 June 2025 to $20,000. This Government announced this back in the 2024-25 Federal Budget but faced a number of hurdles.
This means that individuals and entities who carry on a business with turnover of less than $10m can claim an immediate deduction for the cost of depreciating assets (eg, plant and equipment). You will need to acquire the assets during the 2025 financial year. The only catch is the cost of the asset, ignoring GST credits that can be claimed, is less than $20,000.
If you are thinking about purchasing an asset before 30 June 2025 with the hope of claiming an immediate deduction, then please reach out to us to confirm whether it is feasible. The rules contain a number of tricks and traps which we can help you navigate.
The threshold is due to drop back to $1,000 from 1 July 2025. Unless, of course, the Government passes further to provide another temporary increase to the threshold or a permanent modification.
Want to learn more about the Instant Asset Write-Off?
We will keep you updated if anything else changes.
Please reach out to your Aintree Group advisor if you have any further questions!
