Instant Asset Write-Off Extended to 30 June 2025: What Small Businesses Need to Know

Published on 9 June 2025 by Drew Pflaum
Categories: Business, Accounting

Relevant For:

Small business owners and operators with turnover under $10 million seeking tax-effective asset purchases

Key Points:

The $20,000 instant asset write-off has been extended to 30 June 2025.

Applies to assets first used or installed ready for use between 1 July 2024 and 30 June 2025.

Eligibility requires use of simplified depreciation rules and turnover under $10m.

Can apply to multiple assets if each costs under $20,000.

Higher-cost assets can be pooled and depreciated at 15% initially, then 30%.

Full Article:

Small businesses will welcome the Federal Government’s decision to extend the $20,000 instant asset write-off to 30 June 2025, as confirmed in the 2024–2025 Budget. Now legislated, this extension gives eligible businesses an extra year to take advantage of the deduction on qualifying asset purchases.

Under the scheme, eligible small businesses can immediately deduct the business-use portion of the cost of eligible depreciating assets, new or second-hand, provided each asset costs less than $20,000. The limit applies on a per-asset basis, meaning multiple assets can qualify as long as each is under the cap.

To access the write-off for the 2024–2025 income year, a business must:

• have an aggregated turnover of less than $10 million;
• use the simplified depreciation rules; and
• purchase and first use (or install ready for use) the asset between 1 July 2024 and 30 June 2025.

Assets above the $20,000 threshold can still be placed into the simplified depreciation pool. These will be depreciated at 15% in the first year and 30% in subsequent years. Furthermore, any pool balance under $20,000 at the end of 2024–2025 may be written off in full.

Examples of eligible assets include office furniture, tools, equipment and computers. However, the instant write-off does not apply to all asset types. Notably excluded are assets leased out for most of their useful life, horticultural plants, software in a development pool, R&D equipment and capital works such as buildings and structural improvements.

For small business owners, this extension provides valuable cash flow relief and planning certainty, making it a timely opportunity to invest in the tools and infrastructure needed for growth.

If you’re in Western Australia and looking for a small business accountant to help you with your 2025 tax return, then reach out to us to utilise our high-quality business accounting services.