The government has eventually passed the legislation to raise the instant asset write – off threshold to $20,000 for the year ending 30 June 2025. This was part of the 2024 – 25 Federal Budget announcement, but the government encountered several obstacles in getting the legislation passed.

Here’s what it means: individuals and entities running a business with an annual turnover of less than $10 million can usually claim an immediate deduction for the cost of depreciating assets (such as plant and equipment) acquired during the 2025 financial year, if the asset cost, excluding any claimable GST credits, is less than $20,000.

If you’re considering buying an asset before 30 June 2025 to claim an immediate deduction, it’s advisable to contact us to clarify the details. The rules have various nuances and potential pitfalls that we can assist you with.

After 1 July 2025, the threshold is set to return to $1,000, unless there is additional legislation to temporarily increase the threshold again or make it a permanent change.