Can I Claim Instant Asset Write-Off as a Business Expense in Australia?
Yes — small businesses (aggregated turnover under A$10 million) can immediately deduct the cost of eligible depreciating assets up to A$20,000 per asset (extended to 30 June 2025). Multiple assets can be written off — the threshold is per asset.
What Australian Taxation Office (ATO) says
Section 328-180 ITAA 1997 allows immediate write-off of eligible depreciating assets first used or installed ready for use in the income year, with cost under the threshold. Threshold raised back to A$20,000 for 1 July 2024 to 30 June 2025 (subject to legislation passing).
When you can claim
- Computers, laptops, phones costing under A$20,000
- Office furniture and tools
- Trade tools and small equipment
- Multiple assets each under the threshold (no aggregation)
When you cannot claim
- Assets above the threshold (depreciate normally)
- Buildings and structural improvements
- Trading stock / inventory
- Cars beyond the car limit (A$69,674 FY25)
Good to know
Important: The A$20,000 threshold for 2024–25 was uncertain at the time of writing — confirm the current legislation before relying on it. Default threshold is A$1,000.
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