Instant Asset Write Off - $20,000 threshold applies for FY2025
Perrier Ryan • April 1, 2025
TAX UPDATE:
Temporary increase to the instant asset write off (IAWO) threshold extended to FY2025
Passed by the Senate on 26 March 2025
Although not apparent in the Budget papers, in its Small Business Statement, the Government reaffirmed its commitment to providing cash flow support to small businesses by extending the temporary increase in the instant asset write-off (IAWO) threshold.
The enabling Bill, which gives effect to the Federal Budget 2024-2025 announcement, was passed by the Senate on 26 March 2025 - nine months into the income year of its effect. Schedule 4 to this Bill extends the $20,000 IAWO threshold for an additional 12 months, until 30 June 2025. Better late than never, at least businesses now have certainty on whether they can immediately write off assets costing $1,000 to less than $20,000 in the FY 2024-2025.
It's worth noting though, that unless there is a further legislative amendment, the IAWO threshold reverts to the standard threshold of $1,000 in the Income Tax Assessment Act 1997 from 1 July 2025.
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