The threshold of $20,000 which came into effect as of 1st July 2023 which applies on an asset per asset basis has now been extended until 30th June 2025 in the recent Federal Government Budget handed down in May 2024. Assets valued at more than $20,000 (which cannot be immediately deducted) can be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter.

The extended amount of $ 20,000 will revert back to the $1,000 limit in July 2025 (unless the government introduces further changes to the scheme). Small businesses with an aggregated turnover of less than $10 million will have the ability to immediately deduct eligible assets costing less than $20,000. These assets must be applied or installed and ready to use between 1st July 2024 and 30th June 2025. The instant asset write-off provisions continue to be a valuable incentive for small businesses.

Flakus and Associates is well versed in Equipment Finance having successfully assisted clients over the past 27 years. Call Paul on 0417 567 747 to discuss your equipment needs.

 

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