The $150,000 instant tax write-off has been extended to 30 June 2023

The full instant tax write off is available on NEW and USED equipment up to $150,000*.

Instant asset write-off for eligible businesses as outlined by the Australian Taxation Office.

Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.

Instant asset write-off can be used for:

  • Multiple assets, if the cost of each individual asset is less than the relevant threshold
  • New and second-hand assets

If you are a small business, you will need to apply the simplified depreciation rules in order to claim the instant asset write-off. It cannot be used for assets that are excluded from those rules.

The instant asset write-off eligibility criteria and threshold have changed over time. You need to check your business’s eligibility and apply the correct threshold amount depending on when the asset was purchased, first used or installed ready for use.

Current temporary tax depreciation incentives

There are currently three temporary tax depreciation incentives available to eligible businesses:

  • Temporary full expensing
  • Increased instant asset write-off
  • Backing business investment

The instant asset write-off does not apply for assets you start to hold, and first use (or have installed ready for use) for a taxable purpose, from 7.30pm (AEDT) on 6 October 2020 to 30 June 2023. You must immediately deduct the business portion of the asset’s cost under temporary full expensing.

If temporary full expensing does not apply or you are not eligible for it, you may still claim the depreciation deduction under instant asset write-off if the asset was:

  • purchased by 31 December 2020, and
  • first used or installed ready for use before 30 June 2021.

For the 2019–20 and 2020–21 income years, eligible businesses may be able to deduct the cost of new depreciating assets at an accelerated rate using the backing business investment – accelerated depreciation rules.

We have prepared a high-level snapshot to help you work out how these incentives may apply to you.
Find out about:

  • Interaction of tax depreciation incentives