What Is the $20,000 Instant Asset Write-Off?

enquiries9474
Jun 3
2 min read

Maximise Your Tax Savings: Leverage the $20,000 Instant Asset Write-Off Before June 30

As the end of the financial year approaches, it's crucial for small businesses to capitalise on available tax incentives. One such opportunity is the $20,000 Instant Asset Write-Off, which allows eligible businesses to immediately deduct the full cost of qualifying assets. This incentive is set to expire on June 30, 2025, making it imperative to act promptly.(Ledge)

What Is the $20,000 Instant Asset Write-Off?

The Instant Asset Write-Off enables small businesses with an aggregated annual turnover of less than $10 million to immediately deduct the business portion of the cost of eligible depreciating assets costing less than $20,000. This applies to assets first used or installed ready for use between July 1, 2023, and June 30, 2025 .(Australian Taxation Office, Australian Taxation Office)

Key Benefits

Immediate Tax Deduction: Reduce your taxable income by claiming the full cost of eligible assets in the year they are purchased and used.
Per Asset Threshold: The $20,000 limit applies on a per asset basis, allowing multiple assets to be written off instantly .(Australian Taxation Office)
Cash Flow Improvement: Enhance your business's cash flow by reducing tax liabilities in the current financial year.

Eligibility Criteria

To qualify for the Instant Asset Write-Off:

Your business must have an aggregated annual turnover of less than $10 million.(Australian Taxation Office)
The asset must cost less than $20,000 and be used or installed ready for use between July 1, 2023, and June 30, 2025 .(Australian Taxation Office)
The asset must be used for business purposes.(Australian Taxation Office)

Important Considerations

Deadline: Assets must be first used or installed ready for use by June 30, 2025, to qualify for the write-off.
Post-June 2025: If no further changes are announced, the threshold will revert to $1,000 from July 1, 2025, significantly limiting immediate deductions for asset purchases.

How Compass Forklifts Can Assist

At Compass Forklifts, we offer a range of high-quality forklifts and material handling equipment that qualify for the Instant Asset Write-Off. Investing in our equipment before June 30, 2025, not only enhances your operational efficiency but also provides substantial tax benefits.

Take Action Now

With the June 30 deadline approaching, it's essential to evaluate your business needs and make qualifying purchases promptly. Leveraging the Instant Asset Write-Off can result in significant tax savings and improved cash flow.

For more information on eligible assets and to explore our range of equipment, contact Compass Forklifts today.

Disclaimer: This blog post is for informational purposes only and does not constitute financial or tax advice. Please consult with a qualified tax professional to discuss your specific circumstances.