The instant access write-off allows small businesses to claim immediate deductions for new or second-hand plant and equipment assets purchases.
The assets that can be claimed under the instant asset write-off include vehicles, tools and office equipment.
Eligibility criteria
The instant asset write-off is available for businesses with an aggregated turnover of less than $500 million, and the amount that they can claim will depend on the asset purchased and the associated threshold amount.
To be able to make a claim, the item must first be used or installed in the income year you’re claiming for.
We recommend you discuss with your accountant or tax consultant any large purchases you may be willing to make.
Please refer to the eligibility criteria on the ATO website for more information.
Instant write-off thresholds
The threshold varies from $1,000 for businesses with less than $2 million aggregated turnover to $150,000 for businesses with less than $500 million aggregated turnover. Please refer to this table for more information.
The ATO provides examples on how to estimate your instant access write-off. For more information on exclusions, limits and cost of asset that exceeds threshold, please visit: https://www.ato.gov.au/
Sources: https://www.smallbusiness.wa.gov.au/blog/instant-asset-write-explained/ and https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/.
