how does the instant tax write off work Page 8

The instant asset write-off lets eligible Australian businesses immediately deduct the business-use portion of certain asset purchases, rather than drip-feeding depreciation for years.

Buy an eligible asset, have it first used or installed ready for use within the relevant dates, and—subject to the current per-asset threshold and the car limit—the cost (to the business-use percentage) can be claimed in the year you start using it.

New or second-hand can qualify for small businesses, but not everything counts (think passenger cars capped at the ATO’s car depreciation limit, private use excluded, and financing/leasing nuances).

Keep tax invoices, apportion any personal use, and make sure the asset is genuinely for producing assessable income—no claiming your jet ski “for meetings”.

Thresholds, dates and eligibility tests change, so check the latest ATO guidance or an accountant before you start shopping.