Instant asset write-off ending 30 June 2023

by | Apr 13, 2023

Are you

  • A business who intends purchasing or improving an asset before 30 June 2023?

At a glance:

  • You are still able to deduct the full cost of eligible assets up until 30 June 2023.

You should

  • Contact us if you require any clarification or advice

Some pointers about instant tax write-offs.

1. Eligible businesses are still able to deduct the full cost of eligible assets of any value (or improvements to existing assets) if they are purchased up to and including 30 June 2023.

2. During the Covid period, the government introduced temporary full expensing for all businesses, meaning businesses could expense the spend on the asset rather than depreciate those assets over a period of years.

3. In simple terms, to be eligible you must be in business and have an aggregated turnover of <$5 billion, and the asset itself must be principally used in Australia, and first held and used for ‘a taxable purpose’, after 6 October 2020 and on or before 30 June 2023.

4. This initiative comes to an end on 30 June 2023, and asset purchases of $1,000 or more post this date will need to be depreciated.

5. If you are unsure of whether you should purchase assets pre-30 June or post 30 June 2023 based on your current circumstances, or have any questions contact us to discuss.

Read: Top 10 Tax Deductions for Small Businesses

Remember: After 30 June 2023 you will no longer be able to deduct the full cost of eligible assets in the year of purchase, you again must revert to depreciating those assets. 

This article was published on 30/03/2023 and is current as at that date

This article is not a substitute for independent professional advice. We do not warrant the accuracy, completeness or adequacy of the information or material in this article. All information is subject to change without notice. We and each party providing material displayed in this article disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of currency or accuracy of the information or material, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of the information or material in this article. Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation.