Instant asset write-off calculator ($20,000)
Small businesses with aggregated turnover under $10 million that use the simplified depreciation rules can immediately deduct the business portion of each asset costing less than $20,000. The limit is permanent from 1 July 2026. Check one asset at a time; the limit applies per asset.
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The rules in plain English
- The limit tests the full cost, not your business share. The ATO's example: Daryl buys a $40,000 ute and uses it 40% for business. His business share is $16,000, but the ute's full cost is over $20,000, so no instant write-off. The $16,000 goes into the small business pool instead.
- GST: if you're registered and can claim the full GST credit, the cost excludes GST (a $22,000 GST-inclusive asset costs $20,000, which is not under the limit). If you're not registered, the cost includes GST.
- Trade-ins: use the price before the trade-in credit.
- Timing: claim it in the income year the asset is first used or installed ready for use, not when it's ordered or paid for.
- $20,000 or more: the business portion goes into the small business pool: 15% in the first year, then 30% a year. If the pool's balance is under $20,000 at the end of the year, the balance can be written off too.
- Opted out before? The 5-year lock-out on re-entering simplified depreciation is suspended until 30 June 2027.
- Cars over the car limit ($69,674 for 2025-26) have extra rules on both cost and GST credits. This tool flags them; see the ATO.
Sources (checked 17 Oct 2026): ATO Instant asset write-off for eligible businesses (Daryl example, GST, trade-ins, car limit); ATO $20,000 instant asset write-off (permanent from 1 July 2026; now law); ATO small business newsroom, "IAWO here to stay" (4 Sep 2026).
General information, not tax advice. Some assets are excluded from simplified depreciation (for example, certain primary production and leased-out assets). Check with the ATO or a registered tax agent.
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