ATO confirms $20,000 instant asset write-off

17th July 2018

The Australian Taxation Office (ATO) has confirmed that the business portion of assets bought before 30 June, that cost less than $20,000, can be written off in the 2018 tax return.

Business owners are eligible to use simplified depreciation rules and claim an immediate deduction for the business portion of each asset costing less than $20,000 if:

  • Turnover is less than $10 million
  • The asset was first used or installed ready for use in the income year it is claimed in.

Assets purchased for more than $20,000 cannot be immediately deducted and will continue to be deducted over time using the general small business pool.

The balance of this pool can be written off if the balance is less than $20,000 (before applying any other depreciation deduction) at the end of an income year.

For more information, visit the ATO website.