The Small Business Support – $20,000 instant asset write-off measure announced by the Australian Government is for the 2024-25 income year. This measure will be in place until June 30, 2025.

Here are the key points:

• Small businesses with an aggregated turnover of less than $10 million will be able to immediately deduct the full cost of eligible assets costing less than $20,000.
• These assets must be first used or installed ready for use between 1 July 2024 and 30 June 2025.
• The $20,000 threshold will apply on a per asset basis, so 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 income year and 30% each income year after that.

Please note that this measure is not yet law and is currently before Parliament.