Instant asset write-off threshold finally confirmed
Liz Gibbs • May 1, 2025

Instant asset write-off threshold finally confirmed

It has been a long time coming, but the Government finally passed legislation increasing the instant asset write-off threshold for the year ending 30 June 2025 to $20,000. This was announced back in the 2024-25 Federal Budget but the Government faced a number of hurdles in terms of passing the legislation. 


This basically means that individuals and entities who carry on a business with turnover of less than $10m can often claim an immediate deduction for the cost of depreciating assets (eg, plant and equipment) that are acquired during the 2025 financial year (purchased between 1 July 2024 to 30 June 2025) as long as the cost of the asset, ignoring GST credits that can be claimed, is less than $20,000.


Each asset much be first used or installed ready for use for taxable purposes on or before 30 June 2025.


If you are thinking about purchasing an asset before 30 June 2025 with the hope of claiming an immediate deduction, then please reach out to us to confirm the position. The rules contain a number of tricks and traps which we can help you to navigate.


The threshold is due to drop back to $1,000 from 1 July 2025 unless further legislation is passed to provide another temporary increase to the threshold or a permanent modification. 


Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.


Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation. 

The ATO’s updated small business benchmarking tool

By Liz Gibbs • May 1, 2025
The ATO’s updated small business benchmarking tool
subdivision

Property subdivision projects: the tax implications

By Liz Gibbs • May 1, 2025
As the urban sprawl continues in most major Australian cities, we are often asked to advise on the tax treatment of subdivision projects. Before jumping in and committing to anything, it is important to understand the tax liabilities that might arise from these projects.
Tax Planning

Year-end tax planning opportunities & risks

By Liz Gibbs • May 1, 2025
With the end of the financial year fast approaching this is the first blog in our series where we outline some opportunities to maximise your deductions and give you the low down on areas at risk of increased ATO scrutiny.
Superannuation Guarantee

Super guarantee rules catch up with venues and gyms

By Liz Gibbs • April 17, 2025
The superannuation guarantee rules are broad and, in some circumstances, extend beyond the definition of common law employees to some directors, contractors, entertainers, sports persons and other workers.
time management

Feeling Overwhelmed? Try the “Must, Should, Could” Approach

By Liz Gibbs • April 15, 2025
If your to-do list is starting to look more like a novel than a plan for the day, you’re not alone. It’s all too easy to get bogged down by endless tasks, unsure where to start or what really deserves your attention. That’s where the “Must, Should, Could” method comes in—a brilliantly simple way to cut through the clutter and focus on what truly matters.
Solid Business Foundations

Is Your Business Built on a Strong Foundation?

By Liz Gibbs • April 11, 2025
When it comes to improving your business, think of it like building a house. You wouldn’t add a second floor without ensuring the foundation is rock-solid, right? The same goes for your business.
Personal tax cut

Modest $268 Maximum personal tax cut for 2026-27 year

By Liz Gibbs • April 10, 2025
On the last sitting day of Parliament, the personal income tax rate reduction announced in the 2025-26 Federal Budget was confirmed.
How does FBT work

How fringe benefits tax works

By Liz Gibbs • March 31, 2025
An overview of FBT. Find out how FBT applies, what you need to do as an employer, and what deductions you can claim.
Odometer readings

Keeping Odometer Readings for Fringe Benefits Tax (FBT) 31 March 2025

By Liz Gibbs • March 30, 2025
The Australian Fringe Benefits Tax (FBT) year runs from 1 April to 31 March, and one of the key compliance requirements for employers providing motor vehicles to employees is recording odometer readings on 31 March each year. These readings help determine the taxable value of car fringe benefits and ensure accurate FBT calculations.
Monthly GST Reporting for Small Businesses

ATO Introduces Monthly GST Reporting for Small Businesses

By Liz Gibbs • March 25, 2025
From 1 April 2025, the ATO will be moving around 3,500 small businesses from quarterly to monthly GST reporting where they have a history of: ❌ non-payment; ❌ late or non-lodgment; or ❌ incorrect reporting. Once the change is implemented, it will remain in place for a minimum of 12 months. Affected small businesses and their tax agents will be contacted by the ATO when their GST reporting cycle is changed. A review process is available for those who don’t believe they have a history of poor compliance and should be able to remain on their current GST reporting cycle. The ATO believes that this will help small businesses improve compliance with their GST obligations and build good business habits. Do you think this is a good move?
More Posts