Instant asset-write off 2023 

What the Instant Asset Write-off means for your business

On 9 May, the federal budget announced that the instant asset write-off threshold will temporarily increase to $20,000 from 1 July 2023 to 30 June 2024.  

Around 3.8 million businesses will benefit from the government’s initiative to temporarily increase the asset write-off threshold. 

What you need to know  

• Businesses with an aggregated turnover of less than $10 million can immediately deduct the cost of eligible assets up to $20,000. 
• Assets must be first used or installed between 1 July 2023 and 30 June 2024. 
• The threshold applies to multiple assets on a per-asset basis up to $150,000. 
• Assets valued at $20,000 or more that are not immediately deductible are still eligible for the small business simplified depreciation pool. They will depreciate at 15% in the first income year and 30% each income year following. 

What does this mean for businesses? 

The instant asset-write off scheme helps businesses invest in growth by purchasing much-needed assets. It also means business owners can claim the total amount of purchases up to the threshold and reduce their taxable income by the amount spent. 

More help through energy incentives and tax deductions 

Further measures announced in the budget include the small business energy incentive, which will enable businesses to take advantage of $310 million in tax relief. This consists of a bonus 20 per cent tax deduction for eligible assets that support energy reduction and provide support for the installation of energy-efficient assets such as: 

• electric heating and cooling equipment 
• batteries and heat pumps 
• electrical goods 
• more efficient fridges and induction cooktops. 

This is on top of the $62.6 million in energy efficiency grants for small and medium businesses implemented in the October 2022 budget.