--- title: [FAQ] Am I eligible for an immediate write-off? description: 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 threshold. image: https://www.1800approved.com.au/hubfs/blog/EOFY%202019/EOFY.jpg --- [![1800 Approved Finance Solutions](https://www.1800approved.com.au/hubfs/Logos/1800Approved_dark.png)](https://www.1800approved.com.au) ### [**1800 277 768](tel:1800277768) #### WELCOME TO # Our blogs Our aim is to supply you with the best information that you can be confident in your knowledge when you make an application with us.   Apply Now ### Other Posts - [COVID-19 proof your business cash flow – with a little help from the government!](https://www.1800approved.com.au/blog/covid-19-proof-your-business-cash-flow) - [$150,000 Tax-write Off — Going, Going, Gone](https://www.1800approved.com.au/blog/tax-write-off-going-going-gone) - [Current combination of events means it's the best time to buy a car](https://www.1800approved.com.au/blog/the-current-combination-of-events-means-its-the-best-time-to-buy-a-car) - [How to protect your credit score during this COVID-19 pandemic](https://www.1800approved.com.au/blog/tips-on-how-to-manage-your-business-cash-flow-0) - [Tips on how to manage your business cash flow— How the stimulus package is geared to help.](https://www.1800approved.com.au/blog/tips-on-how-to-manage-your-business-cash-flow) - [**](https://www.facebook.com/sharer/sharer.php?u=https://www.1800approved.com.au/blog/tax-write-off-eligibility) - [**](https://twitter.com/share?url=https://www.1800approved.com.au/blog/tax-write-off-eligibility) - [**](https://plus.google.com/share?url=https://www.1800approved.com.au/blog/tax-write-off-eligibility) - [**](https://www.linkedin.com/cws/share?url=https://www.1800approved.com.au/blog/tax-write-off-eligibility) - [**](http://www.youtube.com/user/?url=https://www.1800approved.com.au/blog/tax-write-off-eligibility) ## [FAQ] Am I eligible for an immediate write-off? Posted by [Rodney Michail](https://www.1800approved.com.au/blog/author/rodney-michail) on 1 May, 2019 Find me on: [LinkedIn](https://au.linkedin.com/in/rodney-michail-aa49a960) There is no better time to buy assets for your business than now. ![EOFY](https://www.1800approved.com.au/hs-fs/hubfs/blog/EOFY%202019/EOFY.jpg?width=560&name=EOFY.jpg) 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 assets](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/In-detail/Depreciating-assets/Simplified-depreciation---rules-and-calculations/?anchor=Excludedassets), that 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 | **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 | | **Date Range** | **Threshold for each asset** | | --- | --- | | **7:30pm (AEDT) 02/04/2019 to 30/06/2019** | $30,000 | | **29/01/2019 to before 7.30pm (AEDT) 02/04/2019** | $25,000 | | **7.30pm (AEST) 12/05/2015 to 28/01/2019** | $20,000 | | **01/01/2014 to prior to 7.30pm (AEST) 12/05/2015** | $1,000 | | **01/07/2012 to 31/12/2013** | $6,500 | | **01/07/2011 to 30/06/2012** | $1,000 |   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.*** ## Cost 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)](https://www.1800approved.com.au/hs-fs/hubfs/blog/EOFY%202019/EOFY%201%20(2).jpg?width=560&name=EOFY%201%20(2).jpg)** 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](https://www.1800approved.com.au/truck-loans) 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)](https://www.1800approved.com.au/hs-fs/hubfs/blog/EOFY%202019/EOFY%201%20(1).jpg?width=560&name=EOFY%201%20(1).jpg) Businesses that do not qualify for simplified depreciation will follow the [general depreciation rules](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/General-depreciation-rules---capital-allowances/). --- 1800Approved is your all-in-one finance solution and we put our customers at the heart of everything we do. Apply anytime, anywhere for a business loan with [our convenient application process](http://1800approved.com.au).  [![1800Approved_dark](https://www.1800approved.com.au/hubfs/Logos/1800Approved_dark.png "1800Approved_dark")](https://www.1800approved.com.au/new) #### join our newsletter Keep up with the latest tips #### Financial Services #### Company #### Resources 2008-2026 © Ausloans Pty Ltd Australian Credit Licence # 383 999 - [**](https://twitter.com/1800Approved) - [**](https://www.youtube.com/user/1800approved) - [**](https://www.facebook.com/1800Approved) - [**](https://www.linkedin.com/company/1800approved-finance-solutions) - [**](https://plus.google.com/+1800approvedAu) ![](https://www.facebook.com/tr?id=2099318183729557&ev=PageView&noscript=1) ![](https://www.facebook.com/tr?id=759887617369365&ev=PageView&noscript=1) ![](https://www.facebook.com/tr?id=122106498438777&ev=PageView&noscript=1) ![](https://bat.bing.com/action/0?ti=5128956&Ver=2) [![ClickCease](https://monitor.clickcease.com/stats/stats.aspx)](https://www.clickcease.com) ```json { "@context" : "http://www.schema.org", "@type" : "FinancialService", "address" : { "@type" : "PostalAddress", "addressCountry" : "Australia", "addressLocality" : "Gold Coast", "addressRegion" : "Queensland", "postOfficeBoxNumber" : "4214", "postalCode" : "4214", "streetAddress" : "33 Ereton Dr. Arundel" }, "aggregateRating" : { "@type" : "aggregateRating", "ratingValue" : "4.6", "reviewCount" : "233" }, "areaServed" : "Queensland, New South Wales, Victoria, South Australia, Tasmania, Australian Capital Territory, Northern Territory, Western Australia, Sydney, Perth, Melbourne, Hobart, Darwin, Brisbane, Adelaide, Gold Coast, Canberra, Newcastle, Wollongong, Logan City, Townsville, Geelong, Sunshine Coast, Cairns and Albury/Wodonga", "award" : "Australian Broking Awards - Asset Finance Broker of the Year 2016", "brand" : { "@type" : "Organization", "name" : "1800Approved Finance Solutions" }, "contactPoint" : { "@type" : "ContactPoint", "contactType" : "customer service", "telephone" : "1800277768" }, "description" : "A leading motor vehicle finance broker in Australia since 2008. 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