(02) 8824 7485 This email address is being protected from spambots. You need JavaScript enabled to view it.
Integrity, Innovation & Commitment
Instant Asset Write-Off

Instant Asset Write-Off

  • Thursday, 05 April 2018 13:01

Using the simplified depreciation rules, assets costing less than the instant asset write-off threshold are written off in the year they are bought and used, or installed ready-for-use. This applies irrespective of whether the asset is purchased new or second-hand.

The current threshold is $20,000.

It has changed over the last few years as shown in the table below.

 Instant asset write-off thresholds

Date range


7.30pm (AEST) 12/05/2015 to 30/6/2018


01/01/2014 to prior to 7.30pm (AEST) 12/05/2015


01/07/2012 to 31/12/2013


01/07/2011 to 30/06/2012


The entire cost of the asset must be less than the instant asset write-off threshold, irrespective of any trade-in amount. This table assumes that you are not registered for GST.

In working out the amount you can claim, you must subtract any private use proportion. The balance (that is the proportion used in earning assessable income) is generally the taxable purpose proportion. While only the taxable purpose proportion is deductible, the entire cost of the asset must be less than the threshold.

Note that if you later sell or dispose of an asset for which you claimed an instant asset write-off, you include the taxable purpose proportion of the amount you received for the asset in your assessable income.


Derrick owns a plumbing business called Derrick’s Plumbing which qualifies as a small business. The business purchases a ute for $40,000 on 28 July 2016. Derrick estimates the ute will be used 40% of the time for his business.

Even though the value of the ute to the business is $16,000 ($40,000 × 40%), Derrick can't immediately write it off. Instead he adds the $16,000 for the ute to Derrick’s Plumbing small business pool.


On 18 May 2016 Florence buys a new powerful computer for $6,800 that she uses 80% of the time for business purposes and 20% of the time for personal purposes. She also bought a new printer for $700 which she uses for 100% of the time for business purposes.

For the computer, Florence calculates her instant asset write-off as 80% (the business use proportion) of $6,800, so she claims $5,440. For the printer, she claims the entire cost of $700.

Florence includes the combined amount of $6,140 at Label A of the Business and professional items schedule which is filled out when completing her tax return.



Let us advise you with your accounting and taxation needs!