EOFY 2025: $20K Instant Asset Write-Off

EOFY 2025: How Small Businesses Can Leverage the $20,000 Instant Asset Write-Off

As the end of the financial year approaches, Australian small businesses have a valuable opportunity to enhance their operations while benefiting from tax incentives. The Australian Government’s $20,000 Instant Asset Write-Off scheme allows eligible businesses to immediately deduct the cost of qualifying assets, such as generators, up to $20,000. This initiative not only supports business growth but also improves cash flow by reducing taxable income.

Understanding the $20,000 Instant Asset Write-Off

The Instant Asset Write-Off enables small businesses with an aggregated annual turnover of less than $10 million to claim an immediate deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use. For the 2024–25 income year, the threshold is $20,000 per asset, meaning multiple assets can be claimed, provided each costs less than $20,000.

Key Points:

• Eligibility: Businesses with an aggregated turnover under $10 million.
• Threshold: $20,000 per asset.
• Timeframe: Assets must be first used or installed ready for use between 1 July 2024 and 30 June 2025.
• Asset Types: New and second-hand assets are eligible, with certain exclusions.

It’s important to consult with a tax professional to ensure your business meets the eligibility criteria and to understand how to apply the deduction correctly.

Why Invest in a Generator?

Reliable power supply is crucial for many businesses, especially those operating in construction, agriculture, events, and remote locations. Investing in a generator ensures continuity of operations during power outages and can be essential for businesses that require a constant power supply.

Benefits of Owning a Generator:

• Operational Continuity: Maintain business activities during power disruptions.
• Cost Savings: Reduce downtime and potential losses associated with power outages.
• Flexibility: Operate in remote locations without relying on grid power.
• Asset Ownership: Long-term investment that can be depreciated over time.

Genelite Generators Under $20,000

Genelite offers a range of high-quality generators suitable for various business needs, many of which fall under the $20,000 threshold, making them eligible for the Instant Asset Write-Off.

1. Diesel Generators:
   • Robust and fuel-efficient, ideal for heavy-duty applications.
   • Suitable for construction sites and agricultural operations.
2. Petrol Generators:
   • Portable and easy to operate, perfect for small businesses and events.
   • Lower initial cost and maintenance.
3. Inverter Generators:
   • Provide clean and stable power, safe for sensitive electronics.
   • Quiet operation, suitable for events and mobile businesses.
4. Hybrid Generator + Battery Systems:
   • Combine traditional generators with battery storage for improved efficiency.
   • Reduce fuel consumption and emissions.
5. Mobile Lighting Towers:
   • Essential for nighttime operations in construction and events.
   • Provide both lighting and power supply.

For a comprehensive list of available generators under $20,000, browse the website or contact our sales team for personalised recommendations.

Maximising the Tax Benefit

To fully leverage the Instant Asset Write-Off:

• Plan Ahead: Ensure the asset is purchased and installed ready for use by  June 30, 2025.
• Maintain Records: Keep detailed documentation of the purchase and installation dates.
• Consult Professionals: Work with your accountant or tax advisor to correctly apply the deduction.

The $20,000 Instant Asset Write-Off presents a strategic opportunity for small businesses to invest in essential equipment like generators, enhancing operational efficiency and resilience. By choosing Genelite’s range of reliable and cost-effective generators, businesses can ensure uninterrupted power supply while benefiting from significant tax deductions.

To receive the instant asset write off this financial year, your asset must be first used or installed and ready for use, within the financial year. To ensure you receive your generator on time, talk to our team about our stock availability on 1300 305 912.

Disclaimer: This article provides general information and does not constitute tax advice. Please consult with a qualified tax professional to understand how the Instant Asset Write-Off applies to your specific circumstances.