On March 27th, 2024, The Treasury Laws Amendment Bill involving the Support for Small Businesses, Charities, and Other Measures initiative was discussed in Parliament. While the changes need final approval by the House of Representatives, we could experience significant changes to asset write-off thresholds.
So, what does this mean for you and your small business? Read on to find out!
How Could Instant Asset Write Off Change?
Currently, the instant asset write-off sits at $20,000. Following approval from the House of Representatives, this threshold will increase to $30,000.
The instant asset write-off enables small businesses with an aggregated turnover of $10 million or less to claim tax deductions on multiple assets. This new threshold is excellent news for small businesses, offering an effective way to stabilise finances and focus on growth.
Do Changes Impact Medium-Sized Businesses?
The Bill expands instant asset write-off eligibility to medium-sized businesses with an aggregated turnover of $50 million or less. These entities may also claim deductions on assets with a provisional threshold of $10,000.
How Will the Changes Work?
Once Parliament has implemented the Bill, businesses can write off assets priced at $30,000 or less. To be eligible for this concession, assets such as machinery and vehicles must be installed, ready for use, or first used during the 2023–2024 tax year. In other words, ensure your assets are purchased and ready to use by June 30th, 2024.
Receive Specialist Advice to Expand Your Tax Saving
Advisory One hosts a team of expert accountants that proactively identify and implement changes to legislation affecting small and medium businesses, startups, and individuals. If you’re wondering how to prepare for these changes and what you could claim, contact us today!
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