Great news for small businesses! The Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025 has extended the $20,000 instant asset write-off until 30 June 2026.
Key Details
- Eligibility: Businesses with annual turnover under $10 million.
- Threshold: Assets costing less than $20,000 each.
- Timing: Applies to assets first used or installed ready for use between 1 July 2025 and 30 June 2026.
- Benefit: Claim the full cost of eligible assets in the year of purchase, improving cash flow and reducing taxable income.
Examples of Eligible Assets
- Tools, machinery, and office equipment
- Computers, laptops, and printers
- Furniture and fittings
- Vehicles (if under the $20,000 threshold)
Why This Matters
- Cash flow boost: Immediate deduction instead of spreading depreciation.
- Investment support: Encourages upgrading equipment and technology.
- Planning opportunity: Align purchases with your business needs before the deadline.
Other Measures in the Bill
Beyond the instant asset write-off, the Bill introduces:
- Greater transparency in company ownership reporting.
- Extended consumer protections in the energy market.
- Updated charity regulations for improved integrity.
Next Steps
- Review your upcoming asset purchases.
- Keep accurate records of purchase dates and installation.
- Speak with a qualified accountant to maximise deductions and ensure compliance with Australian taxation law.
Ready to make the most of these changes? Contact our team today to ensure your lodgments are correct and your business benefits fully from the latest ATO measures. AUD.