Under the current rules, eligible businesses can immediately deduct the full cost of assets valued under $20,000, provided they are first used or installed ready for use by June 30, 2025.
This initiative is designed to stimulate investment and improve cash flow, allowing businesses to upgrade equipment, vehicles, and technology without waiting years to claim depreciation.
However, time is running out.
From July 1, 2025, the threshold is set to drop dramatically to just $1,000, significantly reducing the scope of eligible purchases.
This change means businesses planning major upgrades should act quickly to take full advantage of the higher threshold before EOFY.
To qualify, businesses must have an aggregated turnover of less than $10 million and the asset must be used for business purposes.
The write-off applies to both new and second-hand assets, making it accessible to a wide range of industries.
Accountants and financial advisors are urging businesses to review their asset needs and consult professionals to ensure compliance and optimal tax outcomes.
With EOFY fast approaching, strategic planning is essential.
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