New laws passed to support small business owners

Small businesses with an aggregated annual turnover of less than $10 million may be able to deduct the full cost of eligible new and second-hand assets which cost less than $20,000, under the instant asset write-off (IAWO). Eligible assets must be 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 you can instantly write off multiple assets. The usual rules for claiming deductions still apply. You can only claim the business portion of the expense and make sure you have records to prove it.

The small business energy incentive is designed to support businesses to invest in assets to improve their energy efficiency and help them save on their energy bills. This means eligible businesses will be able to receive a bonus 20% tax deduction for spending that supports more efficient energy use. Available for businesses with an aggregated annual turnover of less than $50 million, it applies to eligible assets and improvements up to $100,000. The maximum bonus deduction is $20,000 per business.