It has been a long time coming, but the Government finally passed legislation increasing the instant asset write-off threshold for the year ending 30 June 2025 to $20,000.
Have you had your eye on new plant or equipment? Now could be the time to purchase.
The 20k instant asset write off was announced back in the 2024-25 Federal Budget but the Government faced a number of hurdles in terms of passing the legislation.
The legislation means that individuals and entities who carry on a business with turnover of less than $10m can potentially claim an immediate deduction for the cost of depreciating assets, such as plant and equipment. These assets must be acquired during the 2025 financial year, and the cost, excluding any GST credits that may be claimed, must be under $20,000.
Claiming the instant asset write-off can benefit your business by improving cash flow and reducing tax payable. It also encourages businesses to invest in new assets, potentially leading to improved productivity and business growth.
If you are thinking about purchasing an asset before 30 June 2025 with the hope of claiming an immediate deduction, we strongly encourage you to contact us to verify your eligibility and ensure compliance. The rules contain a number of tricks and traps which we can help you to navigate.
The threshold is due to drop back to $1,000 from 1 July 2025 unless further legislation is passed to provide another temporary increase to the threshold or a permanent modification.
At WLM Accounting, we pride ourselves on being more than just accountants - empowering our clients through the tools, knowledge, and support they need to achieve success.
For a discussion about your business or personal accounting and tax needs, reach out to WLM today.