In late June 2024, the Federal Government officially approved the extension of the $20,000 instant asset write-off for the 2024/25 financial year.

So what does this mean……

Any asset purchase for less than or equal to $20,000 can be a 100% tax deduction this year.  It is not subject to depreciation rules (i.e. claim a portion each year over several years). 

One thing to note, $20,000 is GST-exclusive.  If you are registered for GST, the purchase price needs to be $22,000 or less to qualify.

You can purchase an asset using finance and still be eligible for the instant asset write-off.  This test is on a per-asset basis, e.g. purchasing six vehicles for $100,000, the individual vehicle values are less than $20,000 each. You are eligible for a $100,000 tax deduction.