Who can claim
This deduction is available to individuals.
- Your interest in the asset costs $300 or less after any GST input-tax-credit adjustment and it is mainly used to produce non-business assessable income.
- The asset is not part of a set you started to hold in the income year costing more than $300.
- The asset is not one of identical or substantially identical assets you started to hold in the income year that together cost more than $300.
What you cannot claim
- Private use must be excluded.
- Assets allocated to a low-value pool or subject to another depreciation regime are not claimed again here.
- An asset used mainly to earn business income does not use this non-business immediate-deduction rule.
- Do not claim an item your employer or another party provided, paid or reimbursed; a partial reimbursement reduces the eligible cost.
- A taxable allowance does not create an immediate deduction; the item must independently satisfy every rule.
How the amount is worked out
Eligible cost multiplied by taxable use, if the immediate-deduction conditions are satisfied.
Records the ATO expects
- Purchase receipt
- Work-use calculation
Where this rule comes from
Primary source: Income Tax Assessment Act 1997 section 40-80 (Section 40-80). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- ATO guide to depreciating assets 2025 (Guide to depreciating assets 2025)