The instant asset write-off lets eligible small businesses claim an immediate deduction for the business portion of an asset, instead of depreciating it over several years. For the 2025–26 year the threshold is $20,000.
Who can use it
Small businesses with an aggregated annual turnover under $10 million can immediately deduct the business portion of eligible assets that cost less than $20,000, provided the asset is first used or installed ready for use between 1 July 2025 and 30 June 2026.
The $20,000 is per asset
This is the part people miss: the $20,000 limit applies per asset, not in total. So you can instantly write off multiple assets in the same year — a $4,000 laptop, an $11,000 trailer and a $9,000 piece of equipment can each be claimed in full.
Assets that cost $20,000 or more
Assets at or above $20,000 don’t miss out — they go into your small business general pool and are depreciated at 15% in the first year and 30% each year after that.
Timing matters
“Installed ready for use” is the key phrase. An asset ordered in June but not delivered and ready until July falls into the next year. If you’re planning a purchase near year-end, talk to us first so the timing lands where you want it.
A deduction is only worthwhile if the purchase makes business sense. Don’t buy something just for the tax break — buy what your business needs, then claim it correctly.