Instant Asset Write-Off Ending – Time to Act Before 30 June 30 2025

The $20,000 Instant Asset Write-Off: What You Need to Know

The clock is ticking for small businesses wanting to take advantage of the $20,000 Instant Asset Write-Off, with the scheme set to end on 30 June 2025.

Despite speculation, this year’s Federal Budget did not include an extension, meaning businesses now have a clear deadline.

If no further changes are announced, the threshold will drop back to $1,000 in the next financial year, significantly limiting tax deductions for asset purchases.

For businesses considering equipment, vehicles, or other asset investments, now could be the time to act – especially with end-of-financial-year approaching.

What is the Instant Asset Write-Off?

The Instant Asset Write-Off allows eligible businesses to deduct the full cost of eligible assets costing less than $20,000. The asset must be used or installed by 30 June 2025 to qualify.

The instant asset write-off incentivises businesses to invest in profit-generating equipment and machinery.

Who is eligible?

Small businesses with an annual turnover of less than $10 million.

What can be claimed?

New or second-hand assets (excluding certain ineligible items).
Multiple assets, provided each is under the $20,000 threshold.

Work out if your business can use the instant asset write-off to claim a deduction for the cost of an asset.

Key Considerations: Should You Act Now?

The Write-Off Drops to $1,000 Next Financial Year

If no extension is granted, businesses will only be able to immediately deduct assets under $1,000 from 1 July 2025.

Cash Flow & Tax Strategy

Would bringing forward a planned asset purchase improve your business’s efficiency, cash flow, or tax position this financial year? It’s worth discussing with your accountant.

Plan Ahead

Don’t wait until the last minute as there could be a rush to purchase assets before the deadline, potentially causing supply chain delays or limited stock availability.

CAPEX Planning

If you’re considering major capital investments, now might be the time to accelerate those plans. Secure financing solutions early to ensure you can take full advantage of the scheme before the deadline.

Talk to Ledge Finance

With EOFY fast approaching, this could be the final chance to leverage the Instant Asset Write-Off before the rules change. If you’re considering an investment in your business, now could be the time to review your options.

Need tailored finance solutions? Chat with the Ledge Finance team today to assess your investment potential and borrowing capacity.

Please note that the information provided here is general and does not constitute financial, tax, or other professional advice. You should consider whether the information is appropriate for your needs and seek professional advice before making any decisions.

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Please note the information provided on this page is general in nature and does not constitute financial, taxation or other professional advice. You should consider whether the information is appropriate for your needs and seek professional advice prior to making any decisions.