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.
The rush toward end of financial year is on us - here are a couple of important things to consider at this time: Maximise your Super One key opportunity in your superannuation strategy is to make the most of your Concessional Contributions - but get them in before 23 June 2025 to ensure they're processed in time. Another valuable opportunity is the carry-forward contributions - remembering that unused cap amounts from the 2019-2020 FY will expire after 30 June 2025 - so this is your last chance to use them. Take Advantage of the $20,000 instant asset write-off before 30 June 2025 If you're a small business owner, now is the time to consider investing in new equipment or assets. The $20,000 instant asset write-off has been extended for the 2024–25 financial year — but it expires on 30 June 2025 and there is currently no confirmed extension beyond this date. This applies to assets that are first used or installed ready for use between 1 July 2024 and 30 June 2025. For more, see our attached information , or, call the office - 3391 7566
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Effective 7 March 2025, Perrier Ryan General Insurance portfolio was sold to Benjamin & Benjamin Insurance Group
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