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Small Business Support – $20,000 instant asset write-off Passed By Parliament

The $20,000 instant asset write-off and small business energy benefits passed Parliament on Tuesday more than a year since being announced.

On 9 May 2023, as part of the 2023-24 Budget, the Australian Government announced it will improve cash flow and reduce compliance costs for small businesses by temporarily increasing the instant asset write-off threshold to $20,000, from 1 July 2023 until 30 June 2024.

Small businesses that have claimed immediate deduction for an asset under the simplified depreciation rules in a prior income year can also immediately deduct an amount included in the second element (cost addition) of that asset's cost, 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

  • less than $20,000

  • incurred between 1 July 2023 and 30 June 2024

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


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