What you need to know about the “Instant Asset Write-Off Scheme”

The Instant Asset Write-Off Scheme allows eligible businesses to immediately deduct the cost of certain assets, rather than depreciating them over several years.

This can really reduce your taxable income for the financial year in which the *stuff* was purchased.

How do you know if you’re eligible for this scheme?

On the 14th of May 2024 as part of the 2024-24 Budget, the government announced it will extend the scheme for another 12 months, running up until 30 June 2025. 

Generally speaking, this scheme is available to businesses with an combined turnover of less than $10 million - and you will be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2025.

What can you go and buy?

The $20,000 threshold will apply on a per asset basis, so you can instantly write off multiple assets. You are able to buy anything that you need for your business; we’re talking machinery, tools, a cheap car, laptops, computers, a stuffed crocodile - if you use it in your business, of course. You get the idea - as long as your purchase is under $20K and it’s for business use in the financial year you’d like to claim it - you can theoretically go for gold.

If you want to put that purchase into THIS financial year, time to get moving.

If you want to put your purchase through BEFORE June 30 2024, you need to get a wriggle on. Your assets need to be used or installed ready for use before that date.

Hopefully you’ll have spoken in detail with your accountant about your tax planning for the next 12-24 months already, but it’s important to make sure you’re considering your bigger picture when hitting “add to cart”.

Make smart choices with your cash.

We would never give money advice without taking your full situation into consideration. Spending right before the end of financial year can be a great way to get your tax bill down, but that’s rarely the whole story. Keep in mind your goals for next year - are you hoping to take a loan out? Driving your tax bill down too low can have consequences. 

Our flat fee arrangement means we’re always available to you, if a new goal comes up, or if you remember something after our formal meetings, you can always pick up the phone or send us an email so we can always be sure that the whole picture is always taken care of.

We’re here to help. Click HERE to start kicking goals today.