Who can claim
This deduction is available to individuals and companies.
- The taxpayer is eligible to use the small-business simplified-depreciation rules.
- The asset is first used or installed ready for use in the relevant income year and meets the enacted threshold and asset conditions.
What you cannot claim
- Private use is excluded.
- Do not assume an announced threshold has become law.
- Cars and excluded assets can have additional limitations.
How the amount is worked out
For 2025-26, an eligible small business using simplified depreciation can immediately deduct the business-use portion of an eligible asset costing less than $20,000 when first used or installed ready for use by 30 June 2026. For 2026-27, use the enacted threshold at the time of claim; the current base-law threshold is $1,000 while the permanent $20,000 proposal remains before Parliament.
Records the ATO expects
- Asset invoice
- Date first used or installed
- Aggregated-turnover evidence
- Business-use calculation
Before you rely on this rule
The $20,000 threshold is enacted through 30 June 2026. The separate proposal for a permanent $20,000 threshold from 1 July 2026 was not enacted when this rule was checked on 30 July 2026.
Where this rule comes from
Primary source: ATO instant asset write-off (Updated 7 July 2025). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.