# Can I claim Instant Asset Write-Off as a business expense in Australia?

**Yes, fully claimable.** 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 (the limit applied for 2025-26, and the Government has made it permanent from 1 July 2026). Multiple assets can be written off: the threshold is per asset.

Typical amount: Up to A$20,000 per asset, for businesses with aggregated turnover under A$10 million

## 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. The A$20,000 limit applied for assets first used or installed ready for use from 1 July 2025 to 30 June 2026, and the ATO says the measure is now law as a permanent A$20,000 limit from 1 July 2026. The rule that stops a business from re-entering the simplified depreciation regime for five years after leaving it is suspended until 30 June 2027. An asset that costs A$20,000 or more cannot use the write-off at all and goes into the small business simplified depreciation pool, which is written off at 15 percent in the first year and 30 percent a year after that. The write-off covers new and second-hand assets and is limited to the business-use portion.

## 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)
- Second-hand equipment and tools bought for the business, each under the limit

## 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)
- The private-use portion of an asset used partly for private purposes

## Good to know

**Pro tip:** Keep the invoice, the date the asset was first used or installed ready for use, and a note of the business-use percentage. The date of first use decides which year the deduction falls in.

**Important:** The A$20,000 limit is permanent from 1 July 2026 according to the ATO, which replaces earlier annual extensions. Check the ATO page before a large purchase, because Parliament has changed this limit many times.

Source: https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/in-detail/depreciation/instant-asset-write-off

## Related expenses

- [Software Subscriptions](https://accounts-os.com/au/expenses/software-australia)
- [Mobile Phone](https://accounts-os.com/au/expenses/mobile-phone-australia)
- [Motor Vehicle Expenses](https://accounts-os.com/au/expenses/motor-vehicle-australia)