The A$20,000 write-off — are you eligible?
The instant asset write-off has been extended through 30 June 2026. For small businesses under A$10M aggregated turnover, assets under A$20,000 are deductible in the year they are first used or installed ready for use.
Eligibility check uses the 2025–26 thresholds (under A$20,000 asset cost, under A$10M turnover) extended through 30 June 2026. The asset must be first used or installed ready for use within the eligible window. Cars are capped separately at the luxury car limit. Speak to a registered BAS Agent before relying on this for a purchase decision.
The two thresholds — and the timing trap.
Two simple eligibility tests, plus a date-window rule that catches a lot of businesses out at year-end.
- Turnover threshold. Aggregated annual turnover must be under A$10M. "Aggregated" includes your turnover plus connected and affiliated entities — not just the trading entity buying the asset.
- Asset cost threshold. The asset must cost less than A$20,000 (ex GST if you can claim the input credit; including GST otherwise).
- Timing. The asset must be first used, or installed ready for use, between 1 July 2023 and 30 June 2026. Ordering it on 28 June 2026 but installing it on 5 July 2026 means you miss the window.
- Business use only. Deduction is reduced by any private use. A vehicle used 70% for business gets a 70% deduction.
If you don't qualify — the asset is depreciated under the small-business pool rules (15% diminishing-value in the first year, 30% in subsequent years) or normal effective-life depreciation. The calculator shows the year-one pool figure as a fallback so you can compare.
Cars are different. Cars (designed primarily to carry passengers, < 1 tonne load capacity, < 9 seats) are capped at the luxury car limit, which sits well above the A$20,000 threshold but introduces extra rules. If the asset is a car, get advice.
This information is general in nature and does not constitute personal financial or tax advice. Thresholds and timing rules may be extended or amended; check the ATO website or speak to a registered BAS Agent before relying on this for a purchase decision.
Make the write-off work for you.
EOFY asset-spend planning is part of our year-round tax service — we time purchases, model the deduction and make sure the install date lands on the right side of 30 June.