The Instant Asset Write-Off: What Small Businesses Can Claim

The instant asset write-off lets eligible small businesses deduct the full cost of qualifying assets in the year they are first used or installed, instead of depreciating them over several years.

Who is eligible

Small businesses with aggregated turnover under the scheme's cap (check the current-year rules — the threshold and cap have changed several times and are subject to annual budget measures).

What qualifies

• Tools, equipment and machinery
• Business vehicles (up to the car limit)
• Office furniture and technology
• Each asset is assessed individually against the cap

Practical tips

1. The asset must be first used or installed ready for use in the income year — ordering it before 30 June is not enough.
2. If the asset is used partly for private purposes, only the business portion is deductible.
3. Keep invoices and record the install date.

Confirm the current-year threshold with your accountant before making a large purchase decision based on the write-off.