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.
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.
The instant asset write-off can be used for:
- multiple assets if the cost of each individual asset is less than the relevant limit
- new and second-hand assets.
For an asset for which you have claimed an immediate deduction under the simplified depreciation rules in a prior income year, you can also immediately deduct an amount included in the second element (cost addition) of that asset’s cost, where the amount is:
- the first deductible amount of second element cost incurred after the end of the income year in which the asset was written off
- less than the relevant limit amount for the income year it is being claimed
If you are a small business, you need to apply the simplified depreciation rules to claim the instant asset write-off. It cannot be used for assets that are excluded from those rules.
The instant asset write-off eligibility criteria and limit have changed over time. You need to check your business’s eligibility and apply the relevant limit amount. The income year in which you may claim an instant asset write-off depends on when the asset was purchased, first used or installed ready for use.
Eligibility
Eligibility, and the year in which you may use the instant asset write-off to claim an immediate deduction for an asset depends on:
- your aggregated turnover (the annual turnover of your business and that of any business entities that are your affiliates or connected with you)
- the date you purchased the asset
- when it was first used or installed ready for use
- the cost of the asset being less than the limit.
Learn more here about the Instant asset write-off for eligible businesses.
