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 that use the simplified depreciation rules can immediately deduct the business-use portion of eligible assets costing less than $20,000, provided the asset was 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
Under the simplified depreciation rules, eligible assets costing $20,000 or more are added to the small-business general pool. The taxable-use portion is generally deducted at 15% in the year the asset enters the pool and 30% in later years.
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.