{"id":280654,"date":"2024-07-10T13:31:20","date_gmt":"2024-07-10T01:31:20","guid":{"rendered":"https:\/\/www.reckon.com\/au\/?post_type=sbh&p=280654"},"modified":"2026-04-07T17:27:59","modified_gmt":"2026-04-07T05:27:59","slug":"what-is-how-instant-asset-write-off-work","status":"publish","type":"sbh","link":"https:\/\/www.reckon.com\/au\/small-business-resources\/end-of-financial-year\/what-is-how-instant-asset-write-off-work\/","title":{"rendered":"What is the instant asset write-off?"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.23″ custom_padding_tablet=”” custom_padding_phone=”0px||||false|false” da_disable_devices=”off|off|off” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Copy paste body text here” _builder_version=”4.27.6″ header_2_font_size=”32px” hover_enabled=”0″ header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” locked=”off” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

The instant asset write-off is a tax incentive from the Australian government that lets small businesses claim an immediate tax deduction for certain assets. Instead of claiming depreciation over several years, you can immediately write off the full cost on your tax return.<\/p>\n

It\u2019s a tax break to encourage spending and support small businesses. The small business instant asset write-off lowers your taxable income, which means real tax savings at your marginal tax rate.<\/p>\n

How does instant asset write-off work?<\/h2>\n

It lets businesses instantly deduct the entire cost of an eligible depreciating asset in the income year when it\u2019s first used or installed ready for use.<\/p>\n

By allowing businesses to take an immediate deduction, there\u2019s no need for the slower process of claiming the decline in value over the asset\u2019s effective life.<\/p>\n

For 2025\u201326, businesses with an aggregated turnover of less than $10 million can claim the instant asset write-off for eligible depreciating assets costing less than $20,000 each.<\/p>\n

Assets costing $20,000 or more can\u2019t be immediately written off. Instead, you place their business portion into the small business pool, which are depreciated at 15% in the first income year and 30% after.<\/p>\n

Hot tip:<\/strong><\/span><\/em> The asset must be first used or installed ready for use for a taxable purpose between 1 July 2025 and 30 June 2026.<\/p>\n

What eligible assets can you claim?<\/h2>\n

Eligible assets include:<\/p>\n