Extension of the instant asset write off provisions for small businesses
8 April 2025
Instant asset write-off for small business entities extended to 30 June 2025
Treasury Laws Amendment (Tax Incentives and Integrity) Act 2025, which includes the measure to extend the $20,000 instant asset write-off for small business entities by 12 months until 30 June 2025, has received Royal Assent on 28 March 2025.
This will allow small businesses (with an aggregated annual turnover of less than $10 million) to continue to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use on or before 30 June 2025. The $20,000 asset threshold applies to the cost of eligible depreciating assets, eligible amounts included in the second element of the cost of a depreciating asset, and general small business pools, until 30 June 2025.
The amendments also extend the deferral of the ‘lock-out’ rule for small businesses that previously opted out of the simplified depreciation rules to 30 June 2025.
Unless further extended, the threshold for small businesses to deduct the full cost of depreciating assets will revert to $1,000 from 1 July 2025.
Contact us
Sophia Varelas
PwC | Private | National Leader - R&D and Government Incentives, PwC Australia
Tel: +61 417 208 230
