Good news for small businesses! Parliament has passed legislation increasing the instant asset write-off threshold from $1,000 to $20,000 for the 2024 income year. Here’s what you need to know:
Key Benefits:
Instant Deduction: Depreciable assets under $20,000 purchases between 1 July 2023 and 30 June 2024 can be claimed fully in your businesses 2024 tax return.
Cashflow Advantage: Enjoy immediate tax deductions instead of depreciating assets over several years.
Eligibility:
Timing: The asset must be first used, or installed ready for use, for a taxable purpose within the specified period. (1 July 2023 and 30 June 2024
Multiple Assets: The $20,000 threshold applies per asset, so you can claim deductions for multiple items as long as each is under $20,000.
Stay tuned! A Bill is currently before Parliament to extend this increased threshold to 30 June 2025.
Contact our office if would like to discuss how your business can take advantage of the increased Instant Asset Write-Off.
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