On 9 May 2023, as part of the 2023–24 Budget, the Australian Government announced it would improve cash flow and reduce compliance for small businesses by temporarily increasing the instant asset write-off threshold to $20,000, from 1 July 2023 until 30 June 2024.
This measure is not yet law.
Small businesses, with an aggregated turnover of less than $10 million, will be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024.
The $20,000 threshold will apply on a per-asset basis, so small businesses can instantly write off multiple assets.