Instant Asset Write Off

Instant asset write-off for small businesses: $20K threshold for 2023-24

A new asset write-off will come into effect for the 2023-2024 financial year.  The Federal Government will temporarily increase the instant asset write-off threshold to $20,000.

Small businesses, ie those with an aggregated annual turnover of less than $10 million, will be able to 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.

The $20,000 threshold will apply on a per asset basis, meaning small businesses can instantly write off multiple assets.  Assets valued at $20,000 or more, which cannot be immediately deducted, can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first financial year and 30% each financial year thereafter.

The provisions which prevented small businesses from re-entering the simplified depreciation regime for 5 years if they opted-out will continue to be suspended until 30 June 2024.

For more information, please visit Instant asset write-off | Australian Taxation Office ( or contact our office.