Preparing your business for tax time? Here are some potential tax deductions to keep in mind when preparing to submit your tax return.
1. Support for small businesses
Instant asset write-off
For the income year ending 30 June 2025, small business entities (with aggregated turnover of less than $10 million) can immediately deduct the full cost of eligible assets costing less than $20,000. The instant asset write-off can be used for multiple assets, as long as the cost of each individual asset is less than the $20,000 threshold. The measure applies to eligible assets that were first used or installed ready for use between 1 July 2024 and 30 June 2025.
This means if your business meets the eligibility tests, you may be able to claim asset purchases in your tax return. Not every purchase or expenditure may qualify, and the requirements can be complex, so you’ll need to seek your own independent taxation advice before buying the asset. More information is available on the ATO website.