Senate Passes Amendment to Increase Instant Asset Write-Off

Benefit to be Extended to Medium-Sized Businesses

The Senate has approved significant amendments to the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 expanding the scope of the instant asset write-off provision for small and medium businesses.

The amendments, passed by the Senate on 27 March 2024, include:

  • raising the instant write-off threshold from $20,000 to $30,000
  • businesses with an aggregated turnover of less than $50 million becoming eligible for write-offs, as opposed to the current limit of $10 million.

Under the revised legislation, businesses meeting the criteria will have the opportunity to fully write off eligible depreciating assets valued at less than $30,000. This provision applies to assets first used or installed ready for use during the 2023–24 income year, with these increased thresholds set to expire on 30 June 2024.

The amended Bill is scheduled for further consideration in the House of Representatives. It is anticipated that the amendments will be endorsed before the Parliamentary recess for the Easter break.

The Bill does not become law until it receives Royal Assent.

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Author

Aaron Fitchett

Partner

Aaron is the tax partner at Baumgartners.  He is a Chartered Tax Adviser with 18 years’ experience advising private and corporate clients on a wide range of tax and commercial matters.  Aaron also represents clients in disputes with the Australian Tax Office and state revenue authorities.  Aaron holds a Master of Taxation from UNSW and is an active member of the Taxation Institute of Australia.