Instant asset write-off for eligible businesses
Work out if your business can use the instant asset write-off to claim a deduction for the cost of an asset.
On this page
About the instant asset write-off
Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.
Instant asset write-off can be used for:
- multiple assets if the cost of each individual asset is less than the relevant threshold
- new and second-hand assets.
If you are a small business, you need to apply thesimplified depreciation rulesto claim the instant asset write-off. It cannot be used forassets that are excludedfrom those rules.
The instant asset write-off eligibility criteria and threshold have changed over time. You need to check your business's eligibility and apply the correct threshold amount depending on when the asset was purchased, first used or installed ready for use.
Temporary tax depreciation incentives
There are 3 temporary tax depreciation incentives available to eligible businesses:
- temporary full expensing
- instant asset write-off
(source ATO)
PS: Say a $66K dual cab ute for 'exclusive" business use (with child restraint anchors !)
can be written off in 1 year:
-$6K GST offset
-$60 K income offset
This can amount to a tax benefit of $21K in 1 year.
