Australia’s Most Experienced Audio Visual Supplier

Australia’s Most Experienced Audio Visual Supplier

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Tax Time – 20k Instant Asset Write Off

Are you a sole trader or the owner of a small business, turning over less than $10M per year? The Australian Government has announced new upcoming tax legislation for the 2023-2024 financial years. A Bill has been introduced to parliament containing amendments to ensure a $20,000 threshold will apply to small business entities for the 2024 income year.

This means you can now make business purchases of individual or multiple assets up to a total of $20,000 each, and instantly write off the cost from your taxable income for that financial year.

This could be something small, like a tripod or lights, or something larger like a new camera and lens package to aid in lowering your taxable income.

In order to qualify for this threshold, a range of conditions must be met by the business entity:

  • The entity must carry on business under general principles in the 2024 income year
  • The entity must have aggregated annual turnover of less than $10M. (This can be based on current year or previous year figures)
  • The entity must choose to apply the simplified depreciation rules for the 2024 income year
  • The asset must have a cost of less than $20,000
  • The asset must be first used, or installed and be ready for use, for a taxable purple between 1 July 2023 and 30 June 2024

As the write-off threshold can be applied on a per-asset basis, a small business entity could potentially deduct the full cost of multiple assets across the 2024 financial year, providing that the total cost of each asset comes to less than $20,000.

More information is publicly available on the Australian Taxation Office website, which you can view here.

** Disclaimer **

The above information is general in nature and does not take into account your personal financial situation. Information has been extracted from the ATO website for awareness only. The above does not constitute formal financial advice. You will need to seek personal financial advice from a licenced accountant or do your own independent research for that is tailored to your business. 
Pro AV Solutions are not able to provide financial advice.

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