$20,000 Instant Asset Write-Off Extended – What Small Businesses Need to Know

Introduction

The Australian Government has extended the $20,000 instant asset write-off for eligible small businesses, providing valuable tax relief and helping businesses invest in new equipment or assets. This temporary threshold applies until 30 June 2025, and can significantly reduce your taxable income.

At Trinity Accounting Practice, we’re here to help you take full advantage of this incentive and ensure you comply with all ATO requirements. This blog explains what the instant asset write-off is, who qualifies, what you can claim, and how to make the most of it before the deadline.

What Is the Instant Asset Write-Off?

The instant asset write-off allows small businesses to claim an immediate tax deduction for the business portion of the cost of eligible assets purchased and installed ready for use within the specified timeframe.

Under the current rules, the write-off threshold is $20,000 per asset. That means multiple assets under $20,000 each can be claimed separately.

Eligibility Criteria

To be eligible, your business must:

✅ Have an aggregated annual turnover of less than $10 million
✅ Be actively trading as of the asset purchase date
✅ Purchase and install eligible assets between 1 July 2023 and 30 June 2025

What Can You Claim?

Eligible assets include:

• Tools, equipment, and machinery
• Office furniture and fittings
• Technology (laptops, tablets, mobile phones)
• Business vehicles (that cost under $20,000)
• POS systems and security equipment
• Air conditioners or commercial fridges

The asset must be used or installed ready for use in your business before 30 June 2025.

Excluded Assets

Some assets are excluded from the instant write-off, including:

• Assets costing $20,000 or more
• Assets leased to another party
• Capital works (e.g. building improvements)
• Certain intangible assets (e.g. trademarks)

How Does It Help Your Business?

Instead of depreciating the cost over several years, the instant write-off reduces your taxable income immediately. This can:

✅ Boost cash flow✅ Lower your tax bill for the year✅ Encourage investment in business growth

Record Keeping Requirements

To claim correctly, ensure you:

• Keep tax invoices and receipts
• Record the date the asset was purchased and installed
• Allocate only the business-use portion (if not used 100% for work)
• Work with a registered tax agent

How Trinity Accounting Practice Can Help

We help small businesses:

✅ Identify eligible assets
✅ Maximise deductions
✅ Avoid common ATO mistakes
✅ Stay compliant with instant write-off rules
✅ Strategically plan purchases to boost tax efficiency

Act Before 30 June 2025

Don’t leave it too late. To claim the instant asset write-off, the asset must be installed and ready for use by 30 June 2025.

Now is the time to review your equipment needs, plan smart purchases, and optimise your tax position.

👉 Trinity Accounting Practice
✅ Accounting Firm in Beverly Hills
☎️ 02 9543 6804
📍 159 Stoney Creek Road Beverly Hills NSW 2209
🌐 www.trinitygroup.com.au
📅 Weekend & after-hours appointments available!
📅 Booking Link: https://calendly.com/ramy-hanna

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