$20,000 instant asset write-off extended
The Government recently passed legislation to extend the $20,000 instant asset write-off for small businesses by 12 months to 30 June 2026.
Taxpayers should note that if their business has an aggregated annual turnover of less than $10 million, they may be able to use the instant asset write-off (‘IAWO’) to immediately deduct the business portion of the cost of eligible assets which cost less than $20,000.
Eligible assets must basically have been first used (or installed ready for use) between 1 July 2025 and 30 June 2026. The $20,000 limit applies on a per asset basis, so taxpayers can instantly write-off multiple assets.
The IAWO can be used for both new and second-hand assets (but some exclusions and limits apply).
Please contact the business tax team at Omnis Business Advisory in West Perth for assistance regarding the instant asset write-off extension, including claiming deductions for improvement costs for certain assets.
