Instant Asset Write-Off for 2024–25: What You Can Claim

Published: July 2025

The $20,000 instant asset write-off is back, and it's a golden opportunity for small businesses to lower their tax bill fast — if you know how to play it right.

Here’s the breakdown, GoTax-style.

How the $20,000 Threshold Works

For the 2024–25 financial year, small businesses can immediately write off assets that cost $20,000 or less (excluding GST if you're registered for GST).

This is per asset, not total spend. Buy three eligible assets for $19,000 each? You can write off all three.

To qualify:

• Your business must have a turnover under $10 million

• The asset must be used or installed ready for use in the same year

• It applies to new and second-hand assets

What Doesn’t Qualify

Some things don’t make the cut:

• Assets over $20,000 (you’ll need to depreciate these instead — more below)

• Specific exclusions like horticultural plants and leased assets

• If you're not a small business (turnover over $10 million), different rules apply

Buying an Asset Over $20,000?

Sorry, no instant claim. But you can still get your deduction via the small business depreciation pool.

Here’s how that works:

• 15% deduction in the first year (no matter when you bought it)

• Then 30% each following year on the remaining pool balance

Key Rules and Traps to Watch

• The $20,000 limit is per asset — not per invoice or year

• You must have the asset ready for use this financial year

• The car limit still applies: $68,108 for 2024–25

• Budget changes happen — always double-check with the latest ATO info

Quickfire Checklist

• Is your business turnover under $10 million?

• Asset cost $20,000 or less (ex GST)? → Claim the instant deduction

• Over $20,000? → Use the depreciation pool

• Asset ready for use this year?

• Got your invoice or proof of use?

Pro Tip from the GoTax Crew

The ATO loves a good paper trail. Keep all receipts, invoices, and proof of use. It makes your claim stronger and audit-proof.

Final Word: Claim Smart

This is a powerful way to reduce your taxable income — especially for sole traders, contractors, and small business owners who need new tools, gear, or vehicles.

Gotax makes it simple to claim:

• Full Asset Deductions calculated automatically

• Easy online tax return with business tools included

Get started now: https://www.gotax.com.au/start-now

More Resources:

Income protection

Self Education Car Deductions