Instant Asset Write Off: What You Need to Know in 2024 to 2025
Running a trade business means juggling costs, keeping your tools up to date, and finding smart ways to save on tax. If you have been thinking about upgrading your gear or investing in new equipment, now is the time to take advantage of the government’s Instant Asset Write-Off.
This guide explains everything in simple terms, including what it means, who qualifies, what you can claim, and how to make it work for your business.
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Who Can Use the Instant Asset Write-Off?
To be eligible, your business must:
- Have an aggregated turnover of less than $10 million
- Purchase and use (or install ready for use) an eligible asset between 1 July 2023 and 30 June 2025
- Ensure each asset costs less than $20,000, excluding GST if you are registered for GST
The $20,000 limit applies per asset. So, if you purchase several tools or machines, each under $20,000, you can claim each one individually.
What if the Asset Costs $20,000 or More?
If an asset costs $20,000 or more, it will not qualify for the instant write-off. However, you can still claim depreciation through the simplified depreciation pool for small businesses.
Here is how it works:
- Claim 15 percent in the first year you buy the asset
- Then claim 30 percent in each following year
It is not immediate, but it still helps lower your taxable income over time.
Important Dates to Remember
Make sure you meet the following timelines:
- Instant Asset Write-Off: for assets used or installed between 1 July 2023 and 30 June 2025
- Small Business Energy Incentive: for upgrades installed between 1 July 2023 and 30 June 2024
If you want to claim it in this financial year, you must act before 30 June.
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What to Watch Out For
Before you make any big purchases, here are a few things to check:
- The legislation was proposed but not yet passed into law at the time of writing
- The asset must be used mainly for business
- Make sure it is installed and ready for use within the right time frame
- Good record-keeping is essential
- Always get personalised advice from a tax agent or accountant before making your purchase
Helpful Links
For the most up-to-date information on eligibility andrules, visit the official ATO guidance:
Final Thoughts
The Instant Asset Write-Off is one of the most practical ways to lower your tax bill and upgrade your business at the same time. If you have been putting off that new tool trailer or battery kit, now could be the best time to invest.
Act before the deadline, check with your accountant, andclaim the deduction while it is still available. Your future self will thankyou.
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