Instant asset write-off for 2025-26: eligibility matters

A short guide to the 2025-26 threshold and the eligibility checks to make before claiming.

The instant asset write-off is subject to eligibility rules, an annual threshold and the dates an asset is first used or installed ready for use. For 2025-26, eligible small businesses may be able to immediately deduct the business-use portion of qualifying assets costing less than $20,000 each.

Eligibility can depend on your business structure, aggregated turnover, the asset's cost, when it is first used or installed ready for use, and whether the asset is used for private purposes.

The threshold applies per asset, not as a single annual pool, but the asset still needs to meet the rules. Assets that do not qualify may be dealt with under depreciation or small-business pooling rules.

Keep the tax invoice, purchase date, evidence of when the asset was first used, and a reasonable record of business use. Confirm the current ATO rules before relying on this summary.