ato logo
Search Suggestion:

Small Business Support – $20,000 instant asset write-off

The Government announced for the 2023–24 income year, the instant asset write off threshold will increase to $20,000.

Last updated 18 September 2023

On 9 May 2023, as part of the 2023–24 BudgetExternal Link, the Australian Government announced it will improve cash flow and reduce compliance for small businesses by temporarily increasing the instant asset write-off threshold to $20,000, from 1 July 2023 until 30 June 2024.

This measure is not yet law.

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.

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.

The Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023External Link containing the Small Business Support – $20,000 instant asset write-off measure is currently before Parliament.