$30,000 instant asset write-off!
Historical article — 2019–2020. This page mixes old write-off thresholds and later annotations. Do not use its examples or thresholds for a current purchase. For background only. Check current guidance before acting. Read the newer Regans guide.
The Government has extended the instant tax write off for small business and has also increased the threshold to $30,000. (Edit - This is now $150,000 as of 12/03/2020)
This initiative has been a great success for our clients and we hope it continues long into the future.
"EDIT - AS OF MAY 2026, the threshold is now $20,000"
What does it mean for me?
Any asset you need in order to operate your business can be fully deducted up to the value of $30,000 in the year you purchase it.
Have you purchased?:
- Motor Vehicles
- Computer Equipment
- Plant & Equipment (forklifts etc.)
- Trailers, Buckets, Pumps, Ute Trays
- Air Conditioners, Fridges, fit-outs
The above and much more can be fully deducted in the year it is purchased, so long as its value does not exceed $25,000.
The Fine Print
If you are registered for GST the good news is your threshold is effectively $33,000. The threshold is the EX of GST price you pay.
The tax cost of an asset can include relevant acquisition and installation costs, rather than just the headline price. Financing, insurance and other contract items need separate classification. Do not use this historical example to determine the cost or threshold for a current purchase.
Motor Vehicle Example:
You walk into a dealer and spot the car you want to buy. The salesman tells you it is a $32,000 drive away. Initially, you had wanted a car to meet the criteria of the instant asset write off and as a result, decide to search elsewhere. You may have made a mistake and below is why.
Motor Vehicle: $25,000
GST: $2,500
Insurance: $1,250
Stamp Duty: $1,850
Fees: $1,400
TOTAL: $32,000
In the above example, assuming you were registered for GST you would claim the GST on your next BAS, claim the insurance and fees on your tax return and apply the instant asset write off on the $26,850 EX of GST asset price.
The original ATO resource linked here is no longer available. Use the newer Regans guide linked at the top of this article for the current instant asset write-off rules.
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