Instant Asset Write-Off: Still Worth It in 2025?

Instant Asset Write-Off: Still Worth It in 2025?

In recent years, the Instant Asset Write-Off has been one of the most popular tax planning tools for small and medium businesses across Australia. But as we settle into 2025, many business owners are asking the question: Is it still worth it?

The answer, as always with tax, is: It depends. Let’s take a closer look.

What is the Instant Asset Write-Off?

The Instant Asset Write-Off allows eligible businesses to immediately deduct the cost of an asset in the year it is first used or installed ready for use, rather than claiming deductions over several years through depreciation. It’s designed to encourage business investment and stimulate economic activity.

Over the past few years, especially during COVID-19 recovery efforts, thresholds for the write-off skyrocketed, and eligibility expanded significantly. However, changes introduced from 1 July 2023 and into 2024 have brought a return to more “normal” conditions.

What’s Changed in 2025?

As of 2025, here’s what you need to know:

  • Thresholds: The threshold for eligible assets is now $20,000 (down from uncapped temporary full expensing rules that applied during the pandemic years).
  • Eligible Businesses: Small businesses with an aggregated turnover of less than $10 million can access the scheme.
  • Timing Matters: The asset must be first used, or installed ready for use, in the same income year you claim the deduction.

It’s important to check the specific dates and thresholds applying to your circumstances because the rules have shifted several times recently.

Is It Still Worth It?

For many small businesses, the answer is yes — but with some important considerations:

  • Cash Flow vs Tax Benefit: While immediate tax deductions are attractive, it’s crucial not to let tax benefits drive poor purchasing decisions. Always ask yourself: Does the asset genuinely add value to my business?
  • Strategic Investment: If you’re planning to upgrade essential equipment, vehicles, or technology, the Instant Asset Write-Off can make these investments more financially viable.
  • Planning Ahead: With the lower $20,000 threshold, businesses need to be more deliberate in planning purchases to maximise deductions without overspending.

Tax Planning Tips for 2025

  • Timing is Critical: If you’re considering an asset purchase, plan carefully to ensure it falls within the right financial year.
  • Review Cash Flow: Don’t stretch your business financially just for the sake of a tax deduction.
  • Seek Professional Advice: Each business is unique. A tax planning session with SKD Accountants can ensure you maximise deductions while staying in a healthy financial position.

The Instant Asset Write-Off remains a valuable tax tool for Australian small businesses in 2025. Smart, strategic planning is more important than ever.

If you’re unsure how the Instant Asset Write-Off fits into your broader tax strategy, or if you’d like personalised advice, get in touch with SKD Accountants today. We’re here to help you navigate the changing landscape and make the most of your opportunities.

Doncaster Office:

Daniel Thong
Chartered Accountant
Director

Phone number

+61 434 285 409

E-mail address

daniel@skdaccountants.com.au


Address

69 Ayr Street
Doncaster VIC 3108

Keilor Downs Office:

Tony Thong
Chartered Accountant
Director

Phone number

+61 433 704 405

E-mail address

tony@skdaccountants.com.au


Address

16 Kavanagh Crescent
Keilor Downs VIC 3038

How Smart Tax Planning Before 30 June Saved One Client Over $20,000 in Tax

How Smart Tax Planning Before 30 June Saved One Client Over $20,000 in Tax

As we edge closer to the end of the financial year, tax planning becomes more than just a compliance requirement—it’s a real opportunity to maximise savings and boost your long-term financial position.

At SKD Accountants, we’re passionate about helping clients make smart, strategic decisions. Here’s a real-life case study of how we helped a client save thousands in tax with some well-timed planning before 30 June.

The Client: Dual-Income Earner with a Capital Gain

Our client, Sarah*, had a unique tax scenario. She is a full-time employee earning a salary and also runs her own company, from which she draws a wage. In the 2025 financial year, Sarah sold an investment property and was looking at a capital gain of $300,000.

With EOFY approaching, she came to us for advice on how to legally minimise her tax liability. And we delivered.

The Strategy: Timing and Super Contributions

After carefully reviewing her financials and forecasted income, we implemented the following two-part tax planning strategy:

1. Maximising Superannuation Contributions

We advised Sarah to take advantage of the concessional superannuation contributions cap, which in her case allowed her to contribute up to $30,000 into her superannuation fund. Because this is a tax-deductible contribution, it directly reduced her assessable income, cutting down the tax payable on her capital gain significantly.

Not only did she save on tax, but she also grew her retirement savings—a win-win!

2. Delaying Company Income to the New Financial Year

Since Sarah controls her own company, we recommended she delay paying herself any further income until after 1 July 2025. This allowed her to shift income into the next financial year, keeping her taxable income lower in the current year and reducing the amount of income she has to pay at the highest marginal tax rate.

The Result: Over $20,000 in Tax Savings

By strategically structuring her income and utilising her full super cap, Sarah reduced her taxable income enough to save over $20,000 in tax. All legally and efficiently.

The Takeaway: Don’t Leave Tax Planning Too Late

Sarah’s case is a prime example of why early tax planning is essential. Waiting until after 30 June means you’ve missed the opportunity to take advantage of smart strategies like these.

If you’ve sold an asset, run a business, or have multiple income streams, now’s the time to plan. The earlier you act, the more options you have to minimise your tax.

*Name changed for privacy.

Want to find out how much tax you could save before 30 June?

Book your free 30-minute tax planning session with our team today. Let’s tailor a strategy that works for you and your goals.

 

Doncaster Office:

Daniel Thong
Chartered Accountant
Director

Phone number

+61 434 285 409

E-mail address

daniel@skdaccountants.com.au


Address

69 Ayr Street
Doncaster VIC 3108

Keilor Downs Office:

Tony Thong
Chartered Accountant
Director

Phone number

+61 433 704 405

E-mail address

tony@skdaccountants.com.au


Address

16 Kavanagh Crescent
Keilor Downs VIC 3038

What Is Tax Planning and Why It Matters

What Is Tax Planning and Why It Matters

As an accounting firm helping business owners stay financially healthy, one of the most common questions we hear is: “What is tax planning, and do I really need it?”

The short answer? Yes – and here’s why.

What Is Tax Planning?

Tax planning is the strategic organisation of your financial affairs to legally minimise your tax liability. It involves understanding current tax laws, leveraging available deductions, offsets, and structures, and making smart financial decisions throughout the year – not just at tax time.

Think of tax planning as your proactive financial roadmap. It helps you:

  • Reduce your tax burden

  • Boost your savings

  • Align your finances with short and long-term goals

  • Ensure compliance with the Australian Taxation Office (ATO)

Why Is Tax Planning Important?

In Australia, tax rules are complex and constantly changing. Without a plan, you could be missing out on significant savings and even risk facing penalties. Here’s why effective tax planning is essential:

1. Maximise Legal Tax Deductions

By keeping records and understanding what can be claimed, individuals and businesses can legally reduce taxable income. Whether it’s work-related expenses, super contributions, or business costs, every dollar counts.

2. Improve Cash Flow

When your tax liability is minimised, more of your hard-earned money stays in your pocket or in your business. Better cash flow means more flexibility, stability, and opportunity.

3. Make Smart Investment Decisions

Tax planning helps you make informed choices about investments, property, superannuation, and trusts. A tailored tax strategy considers your personal or business goals and recommends the most tax-effective path forward.

4. Avoid Unnecessary Penalties

Missing deadlines, incorrect reporting, or poor record-keeping can lead to ATO penalties. A good tax plan ensures you stay compliant and organised all year round.

5. Plan for the Future

From retirement to business succession, strategic tax planning ensures that your future is financially secure, and your tax outcomes are optimised.

Who Should Be Tax Planning?

  • Individuals with multiple income streams, investment properties, or freelance income

  • Small business owners looking to reduce costs and reinvest profits

  • Sole traders and contractors managing fluctuating income

  • High-income earners navigating tax thresholds and minimising obligations

  • Startups and growing companies needing structured tax strategies

How an Accountant Can Help With Tax Planning

While there are plenty of online tips and tools, nothing beats working with a qualified accountant who knows the ins and outs of the Australian tax system. We help you:

  • Identify legitimate tax-saving opportunities

  • Stay compliant with all ATO requirements

  • Make strategic decisions aligned with your life or business goals

  • Plan for upcoming changes, deadlines, or growth

Tax planning is not a one-off task — it’s a year-round strategy.

Ready to Start Saving on Tax?

If you’re tired of giving too much to the ATO and want peace of mind knowing your finances are optimised, we’re here to help. Our personalised tax planning services are designed to deliver real savings and practical advice tailored to your situation.

Book a free consultation today and take the first step toward smarter tax outcomes.