Small Business Instant Asset Write-off: Who Qualifies and What You Get
Learn how small businesses in Australia can claim immediate tax deductions for equipment and assets under certain price limits.
This scheme allows small businesses to claim an immediate tax deduction for the cost of certain business assets.
Who it's for
This is available to small businesses with an annual turnover of less than $10 million.
What you get
You can claim an immediate tax deduction for the full cost of assets that fall below a specific price threshold. This helps reduce your taxable income in the year you purchase the item.
What it costs you
There is no direct fee to use this scheme, but you must keep all your receipts and records. You must also ensure that the asset is used for business purposes to qualify for the deduction.
The catch to know
The price threshold for these assets is not permanent; it changes frequently based on federal budget announcements. Always check the most recent updates to see the current limit before making a large purchase.
How to apply
- Purchase a business asset that falls under the current price threshold.
- Keep all digital or physical receipts for the purchase.
- Ensure you use the asset for business activities.
- Claim the deduction when you lodge your regular tax return.