2024-25 Federal Budget – $20,000 instant asset write-off

Last year’s budget extended ability of businesses with aggregate turnover of less than $10 million to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 until 30 June 2024.

In pleasing news, it was announced that the instant asset write-off has now been extended provided eligible depreciating assets are installed ready for use by 30 June 2025.

Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool, depreciating at 15% for the first year and 30% each year thereafter.

Additionally, the provisions that prevent small businesses from re-entering the simplified depreciation regime for 5 years will continue to be suspended until 30 June 2025, allowing small businesses to opt-in or out of simplified depreciation to give some control over how much depreciation is claimed.

It is worth noting that there is currently a Bill containing amendments proposing increased value limits (from $20,000 to $30,000) and an increase to the turnover threshold (from $10 million to $50 million).

It is uncertain if these amendments will pass through the Parliament, however it is expected that the amounts proposed in the budget will go through.

To discuss how this or other outcomes from the budget may impact you, contact your accountant at Lockwood Partners.