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$20,000 instant asset write-off

$20,000 instant asset write-off

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Under this measure small businesses with an aggregated turnover of less than $10 million, can deduct the following. NB: The second element referred to below generally refers to amounts a small business has paid after the asset was acquired to bring it to its present condition and includes improvements and upgrades to assets. It is best to discuss timing and clarification of any possible ‘second element’ spending and claims with your accountant first.

  • 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
  • it only relates to Plant, Equipment and Vehicles. It does NOT relate to Capital improvements to buildings
  • the items can be new or second hand. You can have paid cash or they can be financed
  • the entity must operate a business during the 2025 income year.
  • choosing to apply the simplified depreciation rules for the 2025 income year is necessary
  • 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:
    • the first amount of second element cost incurred after the end of the income year in which the asset was written off; and
    • less than $20,000.

The $20,000 limit under the measures applies on a per asset basis, so small businesses can instantly write off multiple assets.

Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year after that. In addition, pool balances under $20,000 at the end of 2024-25 income year can be written off.

More information:

 

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Doug Tarrant

Doug Tarrant

Principal B Com (NSW) CA CFP SSA AEPS

About Doug

As founder of the firm Doug has over 30 years of experience advising families, businesses and professionals with commercially driven business, taxation and financial advice.

Doug’s advice covers a wide variety of areas including wealth creation, business growth strategies, taxation, superannuation, property investment and estate planning as well as asset protection.

Doug’s clients span a whole range of industries including Investors; Property and Construction; Medical; Retail and Hospitality; IT and Tourism; Engineering and Contracting.

Doug’s qualifications include:

  • Bachelor of Commerce (Accounting) UNSW
  • Fellow of the Institute of Chartered Accountants
  • Certified Financial Planner
  • Self Managed Superannuation Fund Specialist Adviser (SPAA)
  • Self Managed Superannuation Fund Auditor
  • Accredited Estate Planning Specialist
  • AFSL Licensee
  • Registered Tax Agent
Christine Lapkiw

Christine Lapkiw

Senior Associate B Com (Accounting) M Com (Finance) CA

About Christine

Christine has over 25 years of extensive experience advising clients principally on taxation and superannuation related matters and was a founder of the firm when it began in 2004.

Christine’s breadth and depth of knowledge and experience provides clients with the comfort that their affairs are in good hands.

Christine currently heads up the firm’s SMSF division and oversees a team that provide tailored solutions for clients and trustees on all aspect of superannuation including:

  • Establishment of SMSFs
  • Compliance services
  • Property acquisitions
  • Pension structuring
  • SMSF ATO administration and dispute services

Christine’s qualifications include:

  • Bachelor of Commerce (Accounting)
  • Member of the Institute of Chartered Accountants
  • Master of Commerce (Finance)
Michelle Jolliffe

Michelle Jolliffe

Associate - Business Services B Com (Accounting) CA

About Michelle

Michelle has been with the firm in excess of 13 years and is an Associate in our Business Services Division.

Michelle and her team provide taxation and business advice to a wide variety of clients. Technically strong Michelle can assist with all matters in relation to taxation covering Income and Capital Gains Tax; Land Tax; GST; Payroll Tax and FBT.

Michelle is an innovative thinker and problem solver and always brings an in-depth and informed view to the discussion when advising clients.

Michelle has considerable experience with business acquisitions and sales as well as business restructuring.

Michelle’s qualifications include:

  • Bachelor of Commerce (Accounting)
  • Member of the Institute of Chartered Accountants
Joanne Douglas

Joanne Douglas

Certified Financial Planner and Representative CFP SSA Dip FP

About Joanne

Joanne commenced with Level One in 2004 and has developed into one of our Senior Financial Advisers.

With over 20 years of experience, Joanne and her team provide advice across a wide variety of areas including: Superannuation; Retirement Planning; Centrelink; Aged Care; Portfolio Management and Estate Planning.

A real people person Joanne builds strong long term relationships with her clients by gaining an in-depth knowledge of their personal goals and aspirations while providing tailored financial solutions to meet those needs.

Joanne’s qualifications include:

  • Certified Financial Planner (CFP)
  • Self Managed Superannuation Firm Specialist Adviser
  • Diploma of Financial Planning

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