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

The Government announced for the 2023–24 and 2024–25 income years, the instant asset write-off threshold will increase to $20,000

Last updated 13 May 2024

On 14 May 2024, as part of the 2024–25 Budget, the government announced it will continue to improve cash flow and reduce compliance costs for small businesses by extending the $20,000 instant asset write-off by a further 12 months until 30 June 2025. This measure was previously announced as part of the 2023–24 BudgetExternal Link in relation to the 2023–24 income year.

These measures are 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 2025.

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 for the 2023–24 income year is currently before Parliament.

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