Making the Most of the Instant Asset Write-Off Before EOFY

The Australian Government has extended the instant asset write-off, allowing eligible small businesses to immediately deduct the cost of eligible assets costing less than $20,000. This scheme is available to businesses with an aggregated turnover of less than $10 million and is applicable for assets first used or installed ready for use between 1 July 2023 and 30 June 2025.

For businesses needing to invest in vehicles, equipment, or other essential assets, this is an opportunity to manage cash flow while also benefiting from tax deductions. However, acquiring these assets upfront can be challenging, which is where asset finance and business car loans can help.

How Asset Finance Supports Small Businesses with the Instant Asset Write-Off

Asset finance allows businesses to purchase necessary equipment without large upfront payments, making it easier to manage cash flow. With the instant asset write-off, eligible small businesses can immediately deduct the cost of assets under $20,000, providing an additional financial advantage. Some key benefits include:

• Preserving working capital – Finance enables businesses to acquire assets while keeping cash reserves for other expenses.
• Maximising tax benefits – The instant asset write-off allows immediate deductions, while repayments and depreciation may also be tax-deductible, depending on the financing structure.
• Flexible repayment options – Loan structures can be tailored to align with seasonal income fluctuations.

By combining asset finance with the instant asset write-off, businesses can invest in essential equipment while optimising their tax position and maintaining financial flexibility.

Business Car Loans and the Instant Asset Write-Off

For businesses looking to purchase a commercial vehicle, business car loans offer structured finance options that can complement the instant asset write-off. Businesses purchasing vehicles within the $20,000 threshold may be able to claim the full deduction in the financial year the asset is acquired.

It's important to note that the $20,000 threshold applies on a per-asset basis, allowing businesses to instantly write off multiple assets, each costing less than $20,000.

Planning Ahead Before EOFY

With the end of the financial year approaching, small businesses looking to take advantage of the instant asset write-off should consider their financing options early. The approval process for asset finance or business car loans can take time, so it’s worth exploring solutions sooner rather than later.

While this tax incentive provides a useful way to invest in business growth, it’s important to ensure any financial commitments align with long-term business needs. Speaking with a financial professional can help businesses decide on the best approach for their circumstances.

For more detailed information on eligibility criteria and asset exclusions, refer to the ATO's official guidance on the instant asset write-off.

If you’re considering asset finance or a business car loan to make use of the instant asset write-off before EOFY, now is the time to start planning.

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