$20,000 Instant Asset Write-off For 2025–26
The $20,000 instant asset write-off is now law. Small businesses with an annual turnover of less than $10 million can immediately deduct the business portion of eligible assets that cost under $20,000.
Assets can be new or second-hand. They must be first used or installed, and ready for business use, between 1st July 2025 and 30th June 2026.
The $20,000 threshold applies per asset, so you can claim multiple assets if each one is below the limit.
Normal deduction rules still apply, and you’ll need records to support your claim.
For more information visit, Instant asset write-off for eligible businesses | Australian Taxation Office
What is Instant Asset Write-off
The instant asset write-off allows an immediate deduction of the full cost of eligible assets, rather than depreciating them over several years. Businesses can write off multiple assets, provided each asset is under the $20,000 threshold.
The deduction applies only to the portion of the asset used for business purposes, and proper records must be maintained to substantiate the purchase and business use. This write-off provides immediate tax relief and can help reduce taxable income for eligible businesses.
The Role of Your Bookkeeper
Your Bookkeeper keeps track of asset purchases and installations so they are recorded correctly, with the right dates and amounts.
In most cases, assets should be coded to a fixed asset account, even if they cost less than $20,000. The instant asset write-off is a tax decision made by your accountant, not a bookkeeping one. Your bookkeeper may follow written instructions from your accountant about how specific purchases should be treated during the year.
At the end of the financial year, your bookkeeper will flag all relevant asset purchases for your accountant so that any eligible deductions can be assessed and applied correctly in your tax return.
Source: ATO – Instant asset write-off for eligible businesses (QC61417)
