Instant Asset Write-Off
Instant Asset Write-Off
Buy a tool or piece of equipment under the threshold and you can deduct the full cost this year instead of depreciating it over time. The current rules — and the cliff edge.
Current rule (2025-26)
| Threshold | $20,000 per asset |
| Who qualifies | Small business, aggregated turnover under $10 million |
| Per asset | Applies per asset — you can write off several costing under $20k each |
| Deadline | Asset installed and ready for use by 30 June 2026 |
The cliff edge
- From 1 July 2026 the threshold drops to $1,000 unless the government extends it again
- The $20k extension passed Parliament in November 2025 — confirm it hasn't changed before you rely on it
Guidance only — not financial advice. 'Ready for use' is the test, not the purchase date — order early enough that it's installed by 30 June. Current 2025-26. ato.gov.au.
Sources: ATO — Instant asset write-off · Treasury Laws Amendment (passed Nov 2025)
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