Instant Asset Tax Write-Off

Small businesses, with aggregated turnover of less than $10 million, will 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 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.

 

Some examples of tools where the instant tax write off may apply are:

  • Power Tool Kits
  • Construction equipment
  • Ladders and Scaffolding
  • Concrete mixers and equipment
  • Building tools such as nailers and bradders
  • Air Compressors
  • Auto tools such as Hoists
  • Outdoor Power Equipment such as mowers

 

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% in the first income year and 30% each income year after that.

Please note that the details and information provided on this website is provided for general information purposes only and may be subject to change and at the time of writing the above has not been passed into law.

The information provided above should not be used as, legal, tax, financial, or professional advice. Please consult the tax department or your tax accountant for further information.

For more information about the tax changes, please visit the ATO website https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/small-business-support-20000-dollar-instant-asset-write-off