Good news! the instant asset write-off scheme is being extended another year. Now set to expire 30th June 2024, the instant asset write-off scheme is a temporary tax depreciation incentive that allows businesses to claim an immediate deduction for asset depreciation on taxes.
For a full rundown on how instant asset write-off and temporary full expensing works, read our instant asset write-off guide.
What exactly has changed?
The instant asset write-off scheme was set to end June 2023, but has been extended until June 2024. In addition, the asset value threshold has also been increased. You can now claim assets valued up to $20,000.
If you are a small business with an aggregated annual turnover of less than $10 million and have purchased assets that each cost less than $20,000 and are installed ready for use between 1 July 2023 and 30 June 2024, then you can claim them under instant asset write-off on your 2024 tax.
It’s important to note that the $20,000 threshold applies to each asset, not to the total value of all assets, so you can write off multiple assets.
How do you make the most of instant asset write-off?
These changes will further improve the ability for small businesses to grow and invest in purchases to increase and stabilise their cash flow – something that we at OnDeck strongly support.
Small businesses can immediately deduct the full cost of eligible assets costing up to AUD$20,000 used solely for business purposes and purchased through the 23-24 financial year from their tax.
Take advantage of this extension to quickly improve your workplace infrastructure and technology with updated equipment without putting more strain on your bottom line. Eligible businesses can also apply the write-off scheme to second hand assets, which really expands the potential opportunities of using upgraded assets to get ahead and remain competitive.
Get the capital you need and take advantage of instant asset write-off
You are still eligible to use the instant asset write-off if you use a loan to purchase assets for your business. This makes it an appealing deal for businesses without the cash flow to afford the upfront cost of making purchases such as new equipment, new technology software solutions or purchasing supplies in bulk for a discount.
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