Instant Asset Write-Off: Is Now the Time to Upgrade Your Equipment or Tech?

This incentive allows eligible small businesses to claim an immediate tax deduction for the business portion of certain asset purchases—rather than depreciating them over several years. With the right planning, this can deliver a valuable cashflow boost and help you invest in your business with confidence. 

What Is the Instant Asset Write-Off? 

The Instant Asset Write-Off enables eligible businesses to immediately deduct the cost of an asset in the year it is first used or installed ready for use—provided it falls under the relevant threshold. 

This means you may be able to claim the deduction upfront instead of spreading it across future years. 

Who Is Eligible? 

You may qualify if your business: 

• Has an aggregated annual turnover of less than $10 million 
• Uses the simplified depreciation rules 
• Purchases eligible depreciating assets under the cost limit 
• First uses or installs the asset ready for use within the required timeframe 

What Is the Current Threshold? 

For the 2025–26 financial year, legislation has extended the Instant Asset Write-Off threshold to $20,000 per asset.  

This means you can potentially claim multiple write-offs, as long as each individual asset costs less than $20,000. 

Eligible assets may include: 

• Tools and machinery 
• Office furniture 
• Computers, laptops, printers, and other IT equipment 
• Business-use vehicles (subject to car limit rules) 

Assets costing $20,000 or more cannot be deducted immediately, but may be added to the small business depreciation pool instead.  

Timing Matters 

To claim the deduction, the asset must be: 

• Purchased 
• Installed and ready for use 
• Within the eligible income year 

Simply ordering an asset is not enough—it must be ready for business use before year-end. 

Why This Matters for Your Business 

Used strategically, the Instant Asset Write-Off can: 

• Reduce taxable income for the year 
• Improve cashflow 
• Support timely investment in essential business equipment 
• Provide certainty when planning upgrades 

With the rules and thresholds changing regularly, reviewing your plans early can help ensure you maximise available tax benefits. 

How TaxAssist Accountants Can Help 

At TaxAssist Accountants, we can guide you through the Instant Asset Write-Off rules and ensure you’re making the most tax-effective decisions for your business. 

We can help you: 

• Confirm your eligibility for the write-off 
• Review planned equipment or technology purchases 
• Ensure correct timing and documentation 
• Calculate the business-use portion of mixed-use assets 
• Advise on depreciation pooling for higher-cost items 
• Integrate your purchases into year-end tax planning 

Book a FREE Initial Consultation 

If you’re considering upgrading equipment or technology this financial year, we’re here to help you do it strategically. 

Contact your local TaxAssist Accountant today to book a FREE Initial Consultation and ensure you’re maximising your deductions while staying compliant by clicking here. 

Last updated: 30th January 2026