Instant asset write-off extension: Bill still before Parliament (March 2025 Federal Budget Update)

Published on 26 March 2025 by Drew Pflaum
Categories: Government Budgets

One of the Government’s key tax measures that is currently still outstanding is the proposed extension of the instant asset write-off measures for 2024–2025.

There is no mention in the Budget papers of the measure, though it is alluded to in a couple of media releases. It can be assumed that the Government still intends to proceed with the measure as currently drafted.

By way of reminder, the measures will allow small businesses (with an aggregated turnover of less than $10 million) to:

• deduct in full the cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use between 1 July 2024 and 30 June 2025;
• deduct an amount included in the second element (cost addition) of eligible depreciating asset’s cost that they have incurred between 1 July 2024 and 30 June 2025, if they claimed an immediate deduction for the asset under the simplified depreciation rules in a prior income year where the amount is:
• the first amount of second element cost incurred after the end of the income year in which the asset was written off; and
• less than $20,000.

The proposed $20,000 threshold under the measures applies on a per asset basis, so small businesses can write-off multiple assets.

Further, assets valued at $20,000 or more will continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year after that.

In addition, pool balances under $20,000 at the end of 2024–2025 income year can be written off.