Instant asset write-off — can you claim this tool in full?
For sole traders and small businesses buying tools, plant or a vehicle. Checks whether it's under the threshold for an immediate deduction, or has to be depreciated.
Sound familiar?
- “You're about to drop serious money on a tool and want to know what you get back.”
- “You're not sure whether to buy before 30 June or wait.”
- “You've heard 'write it off' but don't know the actual threshold.”
What this tool does
Takes the asset's cost and your business-use share and tells you whether it's under the instant asset write-off threshold for the year — an immediate deduction — or over it, meaning you depreciate it over time.
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💡 The threshold is per asset, so several items each under it can each be written off. It only applies to small businesses (turnover under $10m), and a car's deduction is capped by the car limit.
What the law actually says
- •Small businesses (aggregated turnover under $10m) can immediately deduct the business portion of an eligible asset that costs less than the threshold and is first used or installed ready for use in the year.
- •The per-asset threshold is $20,000 for assets ready by 30 June 2026, dropping to $1,000 from 1 July 2026. If you're registered for GST, use the GST-exclusive cost.
- •Cars have a separate depreciation 'car limit'. Guidance only — confirm with a registered tax agent.