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$20,000 Instant Asset Write-Off for Small Businesses Extended to June 30, 2025

The government has announced an extension of the instant asset write-off threshold for small businesses, setting it at $20,000 for the 2025 income year. Small businesses with an annual turnover of less than $10 million can immediately deduct the full cost of eligible assets under $20,000, provided these assets are first used or installed by June 30, 2025. This threshold applies on a per-asset basis, allowing small businesses to write off multiple assets instantly. Eligible assets include laptops, computers, medical or work-related equipment, cars, and furniture for your practice or home office.

For assets valued at $20,000 or more, which cannot be immediately deducted, small businesses can place them in the simplified depreciation pool, depreciating them at 15% in the first year and 30% in subsequent years. The suspension of the rule preventing businesses from re-entering the simplified depreciation regime for five years after opting out will continue until June 30, 2025. Starting July 1, 2025, the instant asset write-off threshold will revert to $1,000.