The Instant Asset Write-Off Extended Once Again

Originally introduced during the Global Financial Crisis, the Instant Asset Write-Off was designed to support businesses by allowing them to claim an immediate deduction for the full cost of certain assets. Over the years, it’s become a staple of small business tax planning, with the threshold shifting from $1,000 to $20,000 and even higher during COVID.

On 4 April 2025, the Government announced that the $20,000 threshold will continue for the 2024–25 financial year, even though it wasn’t explicitly included in the Federal Budget. This means eligible small businesses can continue to immediately deduct the full cost of eligible new or second-hand assets costing less than $20,000, rather than spreading the deduction over several years through depreciation.

To take advantage of the write-off, assets must first be used or installed and ready for use by 30 June 2025. If you’re considering purchasing equipment, vehicles, or other business tools, doing so before the end of the financial year can help you maximise your tax deduction now, rather than waiting to depreciate the cost over time.

We’re here to help you make the most of this opportunity. If you’re unsure whether an asset qualifies or how this impacts your overall tax planning, our team is ready to provide tailored guidance.