October 2025 Newsletter

Please click on the following link to view this month's newsletter for October 2025. We would like to highlight the following articles:-

$20,000 instant asset write-off due for extension to 30 June 2026

The Federal Government has announced its intention to extend the $20,000 instant asset write-off for small businesses by a further 12 months, through to 30 June 2026. This measure, announced by the Treasurer on 4 April 2025 as part of an election commitment, is currently before Parliament and not yet law.

Once legislated, small businesses with an aggregated turnover below $10 million that use the simplified depreciation rules will be able to immediately deduct the business portion of eligible depreciating assets costing less than $20,000 each, provided the asset is first used or installed ready for use by 30 June 2026.

The $20,000 threshold applies per asset, allowing multiple assets to be written off, and extends to cost additions and small business general pools (where the pool balance is below $20,000 at year-end). Without this amendment, the write-off limit would revert to $1,000 from 1 July 2025.

Unlock the benefits of downsizer super contributions

Australians aged 55 and over can significantly boost their superannuation by making a downsizer contribution using proceeds from the sale of their home. In the 2024–2025 financial year, 15,800 individuals contributed a total of $4.165 billion to superannuation using this measure.

Eligible individuals can contribute up to $300,000 each (or $600,000 per couple) from the sale proceeds of a qualifying home. Downsizer contributions are not limited by other contribution caps or total super balance, have no work test or upper age limit, and can be combined with other strategies such as the bring-forward rule and personal deductible contributions to contribute up to $690,000 in a single year, if eligible and timed correctly.

To qualify, you must:

Be aged 55 or older at the time of contribution;
Have owned the home for at least 10 years;
Sell a dwelling (not a caravan, houseboat or mobile home) in Australia that is exempt or partially exempt from CGT under the main residence exemption.
Not have previously made a downsizer contribution from another property;
Make the contribution within 90 days of receiving the sale proceeds (usually settlement date); and
Submit the Downsizer contribution into super form (NAT 75073) to your fund at or before the time of contribution.

Failure to meet these conditions, or to lodge the form on time, may result in the contribution being treated as a standard non-concessional contribution and potentially breaching contribution caps.

Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.