Instant Asset Write-Off Extension And Small Business Energy Incentive Passed

Business Support Legislation


The 2023-24 instant asset write-off extension and the Small Business Energy Incentive have passed the Federal Parliament. The instant write off in particular has increased from $1,000 to $20,000 for 2023-24 and 2024-25 per asset

This decision follows strong advocacy from industry associations and the Australian Chamber of Commerce and Industry. MPAQ has further requested that it be made permanent and that the threshold be lifted to allow businesses with turnover up to $50 million to claim as well.

ATO - Instant Asset write-off threshold:

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.

This measure has now passed Parliament.

Small businesses, with aggregated turnover of less than $10 million, can immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024.

Small business instant asset write-off extension:

On 14 May 2024, as part of the 2024–25 Budget, the government announced it will continue to improve cash flow and reduce compliance costs for small businesses by extending the $20,000 instant asset write-off by a further 12 months until 30 June 2025.

This measure is not yet law.

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Small business energy incentive

The energy incentive applies to eligible expenditure on assets between 1 July 2023 and 30 June 2024 ('the bonus period'). It also applies to eligible expenditure on improvements to existing assets incurred during the bonus period. Up to $100,000 of total expenditure is eligible for the energy incentive, with the maximum bonus tax deduction being $20,000 per business.

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