Reminder: Instant asset deadline nears

If you’re thinking about investing in machinery or equipment business you have until June 30 to capitalise on the instant asset write-off, which has a limit of $20,000 for the 2024-25 financial year.

If you have an aggregated annual turnover of less than $10 million and use the simplified depreciation rules, you may be able to immediately deduct the business part of the cost of eligible assets. The ATO offers these guidelines about the instant asset write-off:

• It covers the full cost of eligible depreciating assets costing less than $20,000 that were first used or installed ready for use for a taxable purpose between 1 July 2024 and 30 June 2025.
• If you claimed an immediate deduction for an asset’s cost under the simplified depreciation rules in an earlier income year, you can also immediately deduct the first improvement cost for that asset if it was incurred between 1 July 2024 and 30 June 2025 and cost less than $20,000.
• New and second-hand assets can qualify, although some exclusions and limits apply.
• The $20,000 limit applies on a per-asset basis, so you can instantly write off multiple assets as long as the cost of each asset is less than the limit.
• The usual rules for claiming deductions still apply. You can only claim the business part of the expense and must have records to prove it.

Get in touch if you’d like help to finance an asset purchase in the final weeks of this financial year.

Anthony Landahl | Managing Director Equilibria Finance

This is for general information purposes only and does not constitute advice. With all of these options there are a number of considerations outside the scope of what is covered in this article that you need to understand to ensure your personal circumstances are taken into consideration.

Equilibria Finance is a mortgage broking practice specialising in delivering residential and commercial mortgage and business and asset finance solutions to the clients of financial advice and accounting practices.