How the $20,000 Instant Asset Write-Off Can Save Your Business Tax

The instant asset write-off is a powerful tax-saving tool that allows your business to immediately deduct the full cost of eligible assets costing less than $20,000 — but only until 30 June 2025. From 1 July, the threshold is scheduled to drop back to just $1,000, so now is the time to act.

Here’s how it can save your business money:

1. Immediate Tax Deduction

Instead of claiming depreciation over several years, you can deduct the full cost of eligible items under $20,000 this financial year.

Example: Buy a $15,000 asset before 30 June, and your business may save up to $3,750 in tax (if you’re on a 25% tax rate).

2. Reduces Your Taxable Income

This deduction reduces your business’s profit on paper, meaning you pay less tax.

3. Improves Cash Flow

Lower tax = more money to reinvest in your business sooner.

4. Simpler Record Keeping

One-time deduction means no ongoing depreciation schedules.

Act Before 30 June

Assets must be purchased and ready for use by 30 June 2025 to qualify for the $20,000 limit. From 1 July, the limit reverts to just $1,000, greatly reducing the benefit.

Contact Advisory One today on 02 6324 5888 or email us at admin@advisoryone.com.au