In a recent move to support small businesses, the Australian Government unveiled a promising initiative as part of the 2023–24 Budget. Starting from 1 July 2023 until 30 June 2024, eligible small businesses can take advantage of a temporary increase in the instant asset write-off threshold, now raised to $20,000.

If you’re a small business with aggregated turnover under $10 million, here’s your chance to supercharge your cash flow and streamline compliance. You’ll be able to deduct the entire cost of eligible assets valued at less than $20,000 that are first used or installed and ready for action during this period.

The great news is that this threshold applies individually to each asset, granting you the flexibility to instantly write off multiple items. Assets valued at $20,000 or more can still be added to the small business simplified depreciation pool, ensuring consistent returns by depreciating them at 15% during the first income year and 30% each subsequent year.

Although this measure is not yet law, it reflects the Australian Government’s commitment to empowering small businesses for growth and success. Gear up for a prosperous year ahead with the $20,000 instant asset write-off and make the most out of this incredible opportunity!

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