Instant asset write-off 2025-26

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1. Small Business 2025-26Bought equipment under $20,000?
2. Instant Asset Write-OffDeduct the business portion in one yearthe year it's first used or installed ready for use
3. WHOAggregated turnover under $10 millionusing the simplified depreciation rules
4. WHATEach asset under $20,000New or second-handMore than one asset is fine
5. ATO EXAMPLE$40,000 ute, 40% business useNo write-off: the total cost is over the limit
6. Check before you buy.

Sources

• ATO - Instant asset write-off

  Table 1: Instant asset write-off limits for businesses with an aggregated turnover less than $10 million that apply the simplified depreciation rules

  On or after 1 July 2023 $20,000

  he can immediately deduct its full cost in the Business and professional items schedule of his 2025-26 income tax return.

  the $20,000 Instant asset write-off limit for the 2025-26 income year

  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.

  If you are a small business, you need to apply the simplified depreciation rules to claim the instant asset write off.

  multiple assets, if the cost of each individual asset is less than the relevant limit

  new and second-hand assets.

  On 28 July 2025, Daryl purchases a ute for $40,000. He estimates he will use the ute 40% of the time for his business.

  Daryl can't use the instant asset write-off as the total cost of the ute ($40,000) exceeds the relevant limit of $20,000.