The latest Federal Budget has included an announcement regarding the Instant Asset write-off scheme. 

The scheme, which had been extended over the last 2 budgets to allow an increase for instant write-off from $1k to $20k, has not been extended for the next financial year.

Up until now, the boost had allowed eligible businesses to deduct the full cost of eligible assets costing less than $20k. The upcoming reduction is unexpected bad news for small businesses and now means there is limited time for business owners to take advantage of the offset.

It is worth noting also that the program itself is not legislated which in itself causes uncertainty for businesses. The scheme applies for assets up to $20k and can be used by businesses with an annual turnover of up to $10mil for assets first used or installed and ready to use between 1/7/2024 and 30/6/2025.

After that date, the value of the asset will drop to $1k for write-off.