$20K Write-Off Confirmed: What to Know Before 30 June

If you’ve been waiting on clarity around the instant asset write-off, you’re not alone. After a lot of back and forth in Parliament, the Government has finally passed the legislation confirming the $20,000 instant asset write-off threshold for the 2024-25 financial year. 

It’s a welcome decision - especially for small businesses needing to invest in new tools, equipment, or vehicles - but as always, the devil is in the detail. So, let’s break down what’s changed, what’s allowed, and what to watch out for before you hit 'buy now'.

What is the instant asset write-off?

The instant asset write-off allows eligible businesses to immediately deduct the full cost of certain assets, rather than depreciating them over several years. It's a way to bring forward the tax benefit of your asset purchases - putting more money back in your pocket sooner.

Under the newly confirmed rules, businesses with an annual turnover of less than $10million can claim an immediate deduction for the cost of eligible depreciating assets that are:

• First used or installed ready for use between 1 July 2024 and 30 June 2025
• Cost less than $20,000 (excluding GST)

What kind of assets are we talking about?

Think: laptops, tools, office equipment, fridges, trailers, work vehicles (under the threshold), and other business essentials. As long as the asset is used or installed and ready to go before 30 June 2025, and the cost is under the threshold, you could be eligible to claim the deduction upfront.

But - and this is important - there are rules and exceptions. Not every purchase qualifies, and not every business structure is treated the same way.

Why does this matter?

An immediate deduction reduces your taxable income, which could significantly cut your tax bill. If you’ve been putting off necessary purchases, this could be the window you’ve been waiting for to invest and grow your business - especially in a tight economic climate.

But don’t fall into the trap of spending for the sake of a deduction. An unnecessary purchase is still cash out the door. Make sure the asset is going to add value to your business beyond just the tax benefit.

Don’t get caught out by the fine print

While the increase to $20,000 is great news, there are a few traps to avoid:

• The $20,000 limit is per asset, not cumulative - but if an asset costs $20,001, it’s not eligible.
• You must be carrying on a business, not just holding an ABN.
• Some assets are excluded, such as those leased out or part of a set that collectively exceeds the threshold.
• Timing matters. The asset has to be installed and ready for use by 30 June 2025 - not just ordered or sitting in a warehouse.

The legislation also makes it clear that this is temporary. The threshold is due to revert to just $1,000 from 1 July 2025 - unless the Government steps in again.

Our advice? Don’t wait until the last minute

If you’re planning to make a purchase and want to claim the instant asset write-off, it’s worth getting the right advice now, not on 29 June. With delivery delays and EOFY supply pressures, leaving it late could mean missing out.

At Trekk, we can help you:

• Confirm your business’s eligibility
• Clarify which assets qualify
• Time your purchases for the best result
• Avoid unexpected tax complications

Let’s make EOFY work for you

This isn’t just about ticking boxes - it’s about making strategic decisions that support your goals. Whether you’re eyeing a last-minute asset purchase or reviewing your broader tax strategy, the key is getting ahead of the curve and making every move count.

The $20,000 instant asset write-off is just one of many levers available to help strengthen your business’s financial position before 30 June. But to really get the most out of this opportunity - and avoid the common traps that catch so many business owners out - you need more than just a headline number. You need a clear, personalised plan.

That’s where we come in.

To help you get started, we've created the No Stress Tax Plan - a free step-by-step guide packed with EOFY tips, a business-friendly checklist, and smart strategies to help you make confident, tax-smart decisions.

Or if you’d prefer to talk it through with someone who knows your business inside out, contact the Trekk Advisory team to book a tax planning session. We’ll help you cut through the confusion, find the wins, and walk into the new financial year with clarity and confidence.

EOFY doesn’t have to be overwhelming. With the right strategy, it can be a turning point.