Because if the tax man’s offering you a deal, you may as well take it!
If you’ve been thinking about buying new tools, a work ute, or that fancy coffee machine for your office — the $20,000 Instant Asset Write-Off might just be your new best mate.
It’s not a scam, not a loophole — just a legit tax break that can help small businesses reduce their taxable income. But like anything tax-related, there are rules, and not everyone qualifies.
Let’s break it down — no jargon, no headaches, just the stuff you need to know.
The Instant Asset Write-Off lets eligible businesses immediately deduct the cost of assets they’ve purchased for business use — rather than spreading the deduction out over several years.
For the 2023–24 and proposed 2024–25 financial years, the write-off threshold is $20,000 per asset (pending legislation at time of writing). That means:
🛠️ Buy something for your business that costs $19,999 or less?
✅ You could claim the full amount as a tax deduction that same year.
This tax perk is only available to small businesses that meet these conditions:
✔️ You have an aggregated turnover of less than $10 million
✔️ You’re actively running a business (not just holding an ABN for fun)
✔️ The asset is used or ready for use in the income year you’re claiming
✔️ The asset costs $20,000 or less, excluding GST
✔️ The purchase is made before 30 June 2025 (if current proposal is passed)
So if you're running a café, tradie business, online store, or dog-washing van empire — this might be for you.
Almost anything you buy for your business could qualify — as long as it’s tangible and used in the business.
✅ Laptops and computers
✅ Office furniture
✅ Tools and machinery
✅ Commercial kitchen equipment
✅ Vehicles (under the $20k cap)
✅ Printers, signage, POS systems
No, unfortunately, that weekend getaway to Byron doesn’t count. Nice try.
Some things are off the table, like:
⛔ Assets over $20,000 (but you might still be able to depreciate them over time)
⛔ Personal use items
⛔ Assets purchased under finance structures that don't meet ATO criteria
Also — second-hand items are okay, as long as they meet the price and business-use rules.
No real “catch,” but here’s what you should watch out for:
⚠️ The $20,000 limit is per asset, not total spend
⚠️ The asset must be installed and ready to use in the same financial year
⚠️ You’ll need proper records, invoices, and proof of business use
⚠️ The legislation for the 2024–25 year is still being finalised — so watch this space
And as always — check with your accountant (hello 👋) before you go on a tax-deduction shopping spree.
Dave runs a small plumbing business. In April 2024, he buys:
Because each item is under the $20k cap and used for his business, he instantly writes off all three when he does his tax return — reducing his taxable income significantly.
Legend.
The $20,000 Instant Asset Write-Off is a great way to reinvest in your business, reduce your tax bill, and modernise your gear. But, like most things tax-related, it pays to get it right.
Want to check if you’re eligible?
Let’s have a quick chat and make sure you’re making the most of what’s available.
