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Eligible small businesses have until 30 June 2023 to claim the write-off arrangement of assets costing up to $150,000.
Small businesses wishing to take advantage of the $150,000 instant asset write-off only have two more days to do so.
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As of 1 July 2023, the instant asset write-off threshold will return to pre-COVID levels.
Starting from the new financial year, the instant asset write-off threshold for eligible small businesses with a turnover of up to $10 million will be $20,000 on a per-asset basis.
This will replace the arrangement introduced during the COVID-19 pandemic, which provided a write-off of eligible assets costing up to $150,000 that were first used or installed for use between March 2020 and 30 June 2023.
From 1 July, assets valued at more than $20,000 (which cannot be immediately deducted) can be placed into the small business simplified depreciation pool and depreciated at 15 per cent in the first income year and 30 per cent each income year thereafter.
However, until 30 June, small businesses can use the 20 per cent tax deduction for investing in digital operations. This includes new equipment like technology, cloud computing, e-invoicing, or cyber security.
The investment boost for technology applies to investments made between 29 March 2020 and 30 June 2023, so long as the investments were used or installed ready for use prior to the expiry date.
This also applies to skills and training boosts through registered external training providers for new and existing employees.
The new, $20,000 threshold was unveiled during the Albanese government’s budget 2023–24, with the $20,000 instant asset write-off expected to apply until 30 June 2024.
Speaking of the final days of the $150,000 instant asset write-off, the Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, said it was essential that small-business owners and managers understand these changes.
“They should check their payroll and accounting systems have been updated and they should talk to trusted advisers like accountants and bookkeepers. It is important to get this right,” Mr Billson added.
“With so many pressures on busy small-business leaders as we near the end of the financial year, it can be easy to overlook new and changing rules. However, there are significant changes that cannot be put aside."
To arm yourselves with the skills to serve more SME clients and guide them on how to take advantage of measures like the instant write-off arrangement of assets, come along to the free SME Broker Bootcamp.
Hosted by The Adviser, our speakers will unpack the steps brokers need to take to establish a business that can best service their SME clients’ while building strong relationships with their clients.
The 2023 SME Broker Bootcamp will take place in the following locations:
- Wednesday 6 September: Rydges South Bank, Brisbane
- Tuesday, 12 September: Montage, Sydney
- Thursday, 14 September: Zinc, Melbourne
Places are limited for this free conference so book your place now by registering here.
For more information about the conference, including agenda and speakers, click here.
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