[FAQ] Am I eligible for an immediate write-off?

Posted by Rodney Michail on 1 May, 2019
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Simplified depreciation is another win for small businesses as it allows immediate write-off for a depreciating asset as long as it does not exceed the instant asset write-off threshold.

Depreciating Asset

A depreciating asset is anything owned by the business, except excluded assetsthat declines in value over time and has a limited useful life. A vehicle used for business is a perfect example of a depreciating asset.

Simplified depreciation can be applied by small business owners with an aggregated turnover of less than

> $10 million from July 1, 2016 onwards

> $2 million for previous income years

The table below shows how much can be claimed depending on when the asset was purchased and first used or installed ready-for-use.

From 7.30pm (AEST) on 12 May 2015 until 28 January 2019

From 29 January 2019 until before 7.30pm (AEDT) 2 April 2019

From 7.30pm (AEDT) on 2 April 2019 until 30 June 2019

 You can immediately deduct the business portion of most depreciating assets costing less than $20,000 each

 You can immediately deduct the business portion of most depreciating assets costing less than $25,000 each

 You can immediately deduct the business portion of most depreciating assets costing less than $30,000 each

The cost of the asset must not exceed the instant asset write-off threshold shown in the table below

Date Range

Threshold for each asset

7:30pm (AEDT) 02/04/2019 to 30/06/2019


29/01/2019 to before 7.30pm (AEDT) 02/04/2019


7.30pm (AEST) 12/05/2015 to 28/01/2019


01/01/2014 to prior to 7.30pm (AEST) 12/05/2015


01/07/2012 to 31/12/2013


01/07/2011 to 30/06/2012



Businesses with a turnover from $10 million to less than $50 million may also be eligible for the instant asset write-off. This applies to assets costing less than $30,000 each purchased and used or installed ready for use from 7.30pm (AEDT) 2 April 2019 to 30 June 2019.


The cost of an asset is the amount paid for it plus any other amount paid to make it ready for use.

For example:

               > Equipment: $10,000

               > Transportation: $500

               > Installation: $1,500

In this case, the cost of the asset is $12,000

What if the asset costs more than the instant asset write-off threshold?

EOFY 1 (2)

Small businesses can pool the business portion of higher cost assets and claim:

  • a 15% deduction in the year you start to use them or have them installed ready for use.
  • a 30% deduction each year after the first year.


For example: Billy, a plumber, bought a truck for $35,000 on April 3, 2019 and estimates that the truck will be used 70% of the time for business. Billy can add $24,500 ($35,000 X 70%) in his small business pool and claim $3,675 ($24,500 X 15%) new asset deduction.

EOFY 1 (1)

Businesses that do not qualify for simplified depreciation will follow the general depreciation rules.


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