Instant Equipment Asset Write-Off before EOFY

Have you thought about an Instant Asset Write-Off in June for your business?

In this blog, we have summarised the eligibility criteria, benefits, and some quick facts to help your business benefit from the Small and Medium-sized Enterprises (SME) investment stimulus program, which has now been extended to the end of June 2025. But claims can be made this financial year by 30th June 2024.

As part of the budget, the government announced it would temporarily increase the instant asset write-off threshold to $20,000. However, the Senate amended it to $30,000. The bill is now back with the lower house for final sign-off.
Australian small businesses can now claim an immediate tax deduction on the total cost of eligible assets costing less than $20,000 for another 12 months. Treasurer Jim Chalmers confirmed to the Australian Financial Review that the scheme will now be extended until the end of June 2025.

Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.

The instant asset write-off can be used for:

• Multiple assets if the cost of each asset is less than the relevant threshold.
• New and second-hand assets.

Examples of write-offs include vehicle expenses, equipment assets, advertising, work-from-home expenses, rent or mortgage payments on a place of business, office expenses and business travel expenses.

Fast facts about IAWO:

• The instant asset write-off threshold is currently set at $20,000, but pending final approval, it is proposed to increase to $30,000.
• Write-off claims can be made in the year in which the asset is first used or installed.
• You can claim multiple new eligible assets as long as each asset costs less than the relevant threshold.
• Eligible improvements on new and existing assets can also be claimed.
• Financed equipment and cars can still qualify for a deduction for the cost of eligible items.
• The program end date has been extended to 30th June 2025.

Is your business eligible?

Businesses with an aggregated turnover of up to $5 billion can apply under the new program.

Business Equipment

Whether your business is in manufacturing, warehousing, mining, agriculture, logistics or construction, now is the perfect time to upgrade your capital equipment and claim a full tax benefit in your 23/24 tax return.

Silverback offers an extensive range of Materials Handling, Dangerous Goods Storage Cabinets and containers, Water-Gate Flood Control Barriers, and Pallet Wrapping Machines, which are excellent choices for instant write-offs.

Business Vehicles

The ATO provides an excellent opportunity to upgrade your business vehicles and claim the deduction this financial year. With current national stock shortages of popular makes and models, you need to act fast to receive delivery of your vehicle before 30th June 2024.

How do you claim the instant asset write-off?

If you buy an asset under the threshold amount, you can claim the business portion of the asset's use in your tax return for the 2023/24 financial year.

We suggest you speak to your accountant or tax professional to confirm if financing business vehicles, plant, and equipment could help you maximise your tax deductions and reduce your tax payments this financial year.

Conclusion

Tax write-offs are an essential part of preparing business tax returns. A solid understanding of tax write-offs for business use will reduce your tax liability and save you more money when it comes time to file your return.
For more information on Silverback's extensive equipment range or how to purchase before the end of the financial year, contact your local Silverback team.