Possible extension of the $20k instant asset write-off

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In the 2025 Federal Budget, the Albanese Labor Government made a promise to extend the existing $20k instant asset write-off, if elected.

So, what is the instant asset write-off and how could it be helping your business?

What is the $20k instant asset write-off?

The $20,000 instant asset write-off is a tax measure that allows your eligible small business to immediately deduct the cost of certain depreciable assets costing less than $20,000.

What you get is an immediate tax benefit and simpler tax administration, by making it possible to fully expense lower-value assets in the year they are first used or installed.

The write-off was first introduced as part of the ‘Backing Business Investment initiative in the 2015-16 Federal Budget, with an initial threshold of $20,000 that applied from 12 May 2015 until 30 June 2017

How does the write-off work in 2025?

Under the rules of the write-off, if your small business has an aggregated turnover of less than $10 million, you can deduct:

  • The full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use between 1 July 2024 and 30 June 2025.
  • An amount included in the second element (cost addition) of eligible depreciating asset’s cost that they have incurred between 1 July 2024 and 30 June 2025, if they claimed an immediate deduction for the asset under the simplified depreciation rules in a prior income year where the amount is:
    1. The first amount of second element cost incurred after the end of the income year in which the asset was written off; and
    2. Less than $20,000.

Talk to us about making use of the instant asset write-off

If your aggregated turnover for the year is less than $10 million, and you’re not already making use of the write-off, now’s the time to explore this possible tax benefit.

Being able to write off the first $20k of investment in new assets is a major bonus, especially if you’re planning to grow the business, or need to reinvest in new equipment.

Talk to the team and we can explain the possible advantages of the write-off