Tag: instant asset write off

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$20k Instant Asset Write-Off now law

Posted on | by Allan Hall

The $20,000 instant asset write-off has officially passed into legislation and is now available for eligible assets purchased and installed before 30 June 2025.

This provides some certainty for planning this financial year, however we’re still unsure what will happen beyond 30 June 2025, with no further extensions announced at this stage.

What this means for small business:

  • Available to small businesses with an aggregated turnover under $10 million
  • Applies to eligible depreciating assets costing less than $20,000 (excluding GST)
  • The asset must be first used or installed ready for use by 30 June 2025
  • The $20,000 threshold applies per asset, so multiple assets can be claimed.

If you’re thinking of upgrading or purchasing business equipment, vehicles or tools, now is a good time to take advantage of this incentive. Please contact us if you’d like help assessing whether your planned purchases qualify.

Need help?

To discuss how this measure impacts your business, please contact your Allan Hall Advisor.

CONTACT ALLAN HALL BUSINESS ADVISORS

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Small Business Instant Asset Write-Off Update

Posted on | by Allan Hall

Government support for small business passes Parliament

The Federal Government’s measures to support small businesses has passed in Parliament this week.

The Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 (the Bill) delivers measures announced in last year’s Budget to ease pressure and boost resilience for small businesses.

Key points

  • The Bill will implement a $20,000 instant asset write‑off for assets first used or installed ready for use between 1 July 2023 and 30 June 2024
  • This will improve cash flow and reduce compliance costs for small businesses with a turnover up to $10 million
  • The $20,000 threshold will apply on a per asset basis, so small businesses can write‑off multiple assets
  • Changes are scheduled to commence from 1 July.

The Government’s Small Business Statement in the Budget outlines more than $640 million in small business measures, including a further targeted 12‑months of the $20,000 instant asset write‑off and an additional $3.5 billion of energy bill relief to households and small businesses through the Energy Bill Relief Fund.

The Small Business Energy Incentive, a 2023–24 Budget measure designed to help small and medium businesses save on their energy bills, is designed to help small and medium businesses with turnover up to $50 million pay for upgrades to heating and cooling systems, install batteries and switch to energy saving electrical goods such as efficient fridges.

To read our comprehensive Budget overview please click the button below. 

2024-25 BUDGET OVERVIEW

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Parliament House

Support for Australian small business

Posted on | by Allan Hall

The Government has introduced the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 (the Bill) into Parliament.

The Bill delivers measures announced in the 2022‑23 Budget to ease pressure and boost resilience for small businesses.

Schedule 1 to the Bill will implement a $20,000 instant asset write‑off for one year, as announced in the 2023‑24 Budget, to improve cash flow and reduce compliance costs for small businesses.

Small businesses with aggregated annual turnover of less than $10 million will be able to immediately deduct eligible assets costing less than $20,000, from 1 July 2023 until 30 June 2024.

The $20,000 threshold will apply on a per asset basis, so small businesses can instantly write off multiple assets.

This is targeted, responsible support, to help Australia’s small businesses continue to grow.

Schedule 2 to the Bill will introduce the Small Business Energy Incentive, a 2023‑24 Budget measure designed to help small and medium businesses electrify and save on their energy bills.

Up to 3.8 million small and medium businesses with aggregated annual turnover of less than $50 million will have access to a bonus 20 per cent deduction for eligible assets supporting electrification and more efficient use of energy.  

The new tax incentive applies from 1 July 2023 until 30 June 2024. Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000.

The new Small Business Energy Incentive builds on the Albanese Government’s measures to help small businesses become more energy efficient and ease pressure on their energy bills.

Small businesses are the engine room of Australia’s economy, which is why these new measures are so critical.

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