Revised instant tax write off
A revamped version of the instant asset write-off scheme for small businesses kicks in this income year taking over from Temporary Full Expensing which has been in place for the past few years.
If you have a small business with an aggregated turnover of less than $10 million, you will be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed and ready for use between 1 July 2023 and 30 June 2024.
The $20,000 threshold will apply on a per-asset basis, so you will be able to instantly write off multiple assets.
The $20,000 threshold was described as a temporary increase in the Federal Budget so it is likely to be reduced in future years. It was originally expected to be $1,000.
This measure is not law yet.
Effie Zahos
Effie Zahos has been providing expert advice on personal finance and consumer issues for over two decades, and her insights are sought after by many Australians.
The author of several best-selling books on personal finance, including “A Real Girl’s Guide to Money: From Converse to Louboutins,” “Getting Rich, Staying Rich: A Practical Guide to Investing in Shares,” and “The Great $20 Adventure,” her expertise and experience in the area of finance are unparalleled, and she is a passionate advocate for financial literacy in Australia.
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These Tax Tips with Effie Zahos are for general information only, not tax advice.
Before making any decisions you should speak to a registered tax adviser.