Instant Asset Write Off 2024 & 2025: What Australian Small Businesses Need to Know
Published: May 31, 2025
By Michael Pajar | Business Finance Broker | Casey Asset Finance | 0450 622 115 | michael@caseyassetfinance.com.au | Instagram: @casey_asset_finance
Estimated Read Time: 5 minutes
Introduction
The Instant Asset Write-Off (IAWO) scheme has long been a valuable tax incentive for Australian small businesses, allowing immediate deductions on eligible asset purchases.
As we approach the end of the 2024–25 financial year, it’s crucial to understand the current provisions, upcoming changes, and how to maximise benefits before the June 30 deadline.
This guide covers:
What’s changing and when
How it affects your business
What actions to take before EOFY
Whether you’re planning an equipment upgrade or simply want to reduce your taxable income, this post will help you stay ahead and make informed financial decisions.
Current Provisions for 2024–25
Under current legislation, eligible small businesses can:
Immediately deduct the full cost of eligible depreciating assets costing less than $20,000 each
Claim this deduction for multiple assets, provided each individual asset is below the threshold
Apply this to both new and second-hand assets
Ensure assets are first used or installed ready for use between 1 July 2024 and 30 June 2025
To qualify, a business must:
Have an aggregated annual turnover of less than $10 million
Use the simplified depreciation rules
Note: The $20,000 cap is per asset—not per year.
Changes from July 1, 2025
Unless the government announces an extension, the IAWO threshold is expected to revert to $1,000 from 1 July 2025.
This means:
Immediate deductions will only apply to assets under $1,000
Assets over $1,000 will need to be depreciated over their effective life
Fewer small businesses will benefit from upfront tax relief
Translation: This is your last chance (for now) to take full advantage of the $20,000 threshold.
Who Is Eligible?
To use the Instant Asset Write-Off, your business must:
Be classified as a small business entity (turnover under $10 million)
Apply the simplified depreciation rules
Use the asset mainly for business purposes
Have the asset installed and ready for use by 30 June 2025
Note: If the asset is used for both personal and business use, only the business-use portion can be claimed.
What You Can and Can’t Claim
Eligible Assets:
Office furniture, desks, shelving
Tools, plant, and machinery
POS systems, IT equipment, laptops
Commercial vehicles and utes
Second-hand equipment
Ineligible Assets:
Horticultural plants
Capital works (like building renovations)
Assets leased out to others
Assets used in R&D
Software in development pools
Important: Passenger vehicle deductions are capped at the car limit, which is $69,674 for 2024–25.
Why It Matters Right Now
Improved Cash Flow
Claiming the full cost this year means paying less tax—putting more money back into your business.
Plan Big Purchases Strategically
If you’re planning to upgrade your van, tools, machinery or IT equipment, now is the time to do it.
It’s a Use-It-Or-Lose-It Opportunity
After June 30, the rules become less generous. You might not get this same deduction again for years.
4 Smart EOFY Moves
1. Identify What You Need
List the assets that would boost productivity or efficiency right now.
2. Get Quotes and Secure Delivery Early
The asset must be ready to use by June 30—not just ordered or in transit.
3. Speak to Your Accountant
Confirm the asset qualifies and that your business meets the eligibility requirements.
4. Explore Equipment Finance Options
If cash flow is tight, consider asset finance to spread the cost while still benefiting from the full deduction this year.
Disclaimer: This article is for general educational purposes only. It does not constitute financial or legal advice. For personalised guidance or the most up-to-date policy details, consult a qualified accountant or refer to the Australian Taxation Office.
Need Help Financing Your EOFY Asset Purchases?
At Casey Asset Finance, we specialise in helping business owners secure smart funding for tools, vehicles, machinery, and more—with turnaround times as fast as 24 hours.
If you’re ready to invest in new assets and want to take full advantage of this scheme before it ends:
Call Michael on 0450 622 115
Email: michael@caseyassetfinance.com.au
We’ll help you structure your purchase, find the right lender, and make the most of this EOFY opportunity—without harming your cash flow.
Frequently Asked Questions
How much can I claim under the Instant Asset Write-Off in 2025?
Up to $20,000 per eligible asset, until 30 June 2025.
Can I use asset finance and still claim the deduction?
Yes. As long as the asset is installed and ready for use before the deadline, it’s eligible—even if financed.
Do second-hand assets qualify?
Yes. Both new and second-hand assets are eligible.
What happens after 30 June 2025?
The write-off threshold is scheduled to drop back to $1,000, making most asset purchases ineligible for full immediate deduction.
Final Word
This EOFY could be your last window to leverage the full power of the Instant Asset Write-Off scheme. If you’re sitting on important purchases, now’s the time to act.
Whether it’s a new work vehicle, commercial equipment, or upgraded technology—buying before June 30 could deliver massive tax savings.
Let’s make sure you don’t miss the deadline.
Call or message us today—we’re here to help you move forward, faster.
