Deductions · AU

Instant asset write-off

Immediately deduct an eligible asset instead of depreciating it.

The instant asset write-off lets eligible small businesses claim the full cost of a qualifying asset in the year they start using it, instead of depreciating it over years. It brings the whole deduction forward, which lowers that year’s taxable income. The cost threshold and eligibility are set by the government and can change each year.

Grounded in ATO guidance. General information, not tax advice.

Related terms

Depreciation (decline in value)

Claiming the cost of a big asset gradually over its life.

Sole trader

The simplest business structure — you and the business are one.

Logbook method (car expenses)

Claim your car’s real business-use share of running costs.

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