Budget 2024: What SMEs need to know about the $20,000 instant asset write-off extension

The headline small business measure in the 2024-25 federal budget is a 12-month extension to the $20,000 instant asset write-off, which if legislated, will help SMEs claim an immediate tax benefit on new assets through to June 2025. 

However, a question mark remains over the measure, as the federal government is still yet to successfully legislate a similar 12-month extension that was included in last year’s budget. 

The government has used this year’s budget to tout the cash flow benefits and reduced compliance of the measure, but it must pass legislation by June this year to allow SMEs to benefit from the measure in the 2023-24 financial year. 

So how will the latest iteration of the write-off work?

Here’s what SMEs need to know.