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Instant Asset Write Off

Here's what you need to know about the instant asset write-off. You could be eligible for a tax break on assets you acquire, but you have until 30 June 2023 to do it.


What is the instant asset write-off?

The instant asset write-off incentive allows eligible businesses to claim an immediate deduction for certain costs relating to depreciating assets in the year the asset is first used or installed ready for use.


That means the asset needs to be ready for the business to use.


What is classed as a depreciating asset for my medical or dental practice?

A depreciating asset is an asset that has a limited life expectancy (effective life) and can reasonably be expected to decline in value (depreciate) over the time it is used.


For example, dental chairs, equipment, computers, furniture, lab equipment etc.


When does it end?

June 30 2023


What happens after it ends?

Normal tax rules will apply, which means you will need to depreciate assets over their effective life rather than being able to write them off immediately. Hence, the tax deduction will be spread out over a much more extended period.


Is there anything else I need to know?

Goods must be used or installed and ready for use by June 30 2023.


Ideally, you would also have received the invoice before June 30 2023.


Can I still finance the asset purchase?

Yes! As long as you set up the correct type of loan under the correct entity, you can finance the goods and still receive the tax benefit. Your interest cost on the loan would also be tax deductible. You can reach out to Ali from Credabl to run through your repayment options via ali@credabl.com.au


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