Small Business Support – $20,000 instant asset write-off Temporary increase of the instant asset write-off limit from $1,000 to $20,000 for the 2024-25 income year.

On 14 May 2024, as part of the 2024–25 Budget, the government announced it will continue to provide support for small businesses by extending the $20,000 instant asset write-off limit for a further 12 months until 30 June 2025.

This measure is now law.

Under the measure small businesses with an aggregated turnover of less than $10 million, can deduct:

• the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use between 1 July 2024 and 30 June 2025

• an amount included in the second element (cost addition) of eligible depreciating asset's cost that they have incurred between 1 July 2024 and 30 June 2025, if they claimed an immediate deduction for the asset under the simplified depreciation rules in a prior income year where the amount is:

  • the first amount of second element cost incurred after the end of the income year in which the asset was written off; and

  • less than $20,000.

The $20,000 limit under the measures applies on a per asset basis, so small businesses can instantly write off multiple assets.

Assets valued at $20,000 or more 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. In addition, pool balances under $20,000 at the end of 2024-25 income year can be written off. Small Business Support – $20,000 instant asset write-off | Australian Taxation Office