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Thresholds verified August 2026. Re-check after every federal budget.
The rules that decide eligibility
| Rule | Detail |
|---|---|
| Business test | Small business entity with aggregated turnover under $10 million, counting connected entities, and using the simplified depreciation rules |
| Per-asset threshold | Applies per asset. Three $18,000 machines can all qualify; one $25,000 machine cannot, and goes to the small business pool instead at roughly 15% then 30% declining |
| Cost includes | Purchase price plus delivery and installation. The total cost must clear the threshold, excluding GST for GST-registered businesses |
| Timing | The asset must be first used or installed ready for use by 30 June of the claim year. Ordered and invoiced but still in transit fails: the June spending trap |
| Business use percentage | Deduct only the business portion, apportioned for mixed-use assets |
| Cars | Capped at the car limit regardless of price, so the write-off never covers a $90,000 vehicle in full |
The maths people get backwards
A write-off is a deduction, not a rebate. A $20,000 asset saves $5,000 in a company at 25%, or $20,000 times your marginal rate as a sole trader. The other 70 to 75% is real money spent.
The June ritual of buying equipment for the tax only makes sense for assets the business genuinely needed. Buying a $20,000 trailer to avoid $5,000 of tax is a $15,000 donation to the trailer industry. What the timing rule does legitimately reward is pulling a genuinely planned purchase forward across 30 June, so the whole deduction lands a year earlier. You can price that at your own rate.
Claiming it: through the depreciation labels of the business schedule or company return. Unclaimed write-offs in unlodged years are still sitting there, and past years claimed under the wrong threshold (the rules changed almost annually from 2019 to 2024) are amendment material in both directions.
Frequently asked questions
What is the instant asset write-off threshold right now?
Is it per asset or in total?
Does the asset have to be paid for by 30 June?
Can I write off a car instantly?
Is the write-off a refund of the purchase price?
General information only - not personal tax, financial or legal advice. Consider your own circumstances or speak to a registered tax agent. Remission of penalties or interest and payment plans are decisions of the ATO and outcomes can't be guaranteed.