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Instant Asset Write-Off Calculator

Calculate your tax saving from the $20,000 instant asset write-off for 2024–25. Applies to small businesses with turnover under $10 million.

% of asset used for business purposes
Tax Saving
$0
Asset Cost
$0
Deductible Amount
$0
Tax Rate Applied
0%
After-Tax Cost of Asset
$0

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How the Instant Asset Write-Off Works

The instant asset write-off allows eligible small businesses to immediately deduct the cost of qualifying assets rather than depreciating them over several years. This brings forward your tax deduction, improving cash flow in the year of purchase.

2024–25 Threshold: $20,000

For the 2024–25 financial year, small businesses (turnover under $10 million) can immediately deduct assets costing less than $20,000. Each asset is assessed individually — you can claim multiple assets as long as each one costs less than $20,000.

Business Use Only

Only the business-use portion of an asset is deductible. If you buy a laptop for $3,000 and use it 80% for business and 20% personally, your deduction is $2,400 (80% × $3,000).

Car Limit

For cars (designed to carry fewer than 9 passengers), the maximum cost you can deduct is capped at the car limit of $69,674 for 2024–25, even if the car costs more. The instant asset write-off threshold applies separately.

GST Considerations

If you are registered for GST, calculate the write-off on the GST-exclusive cost, as you claim the GST credit separately. Non-GST-registered businesses use the full GST-inclusive price.

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Frequently Asked Questions

What is the instant asset write-off threshold for 2024–25?
For 2024–25, the instant asset write-off threshold is $20,000 per asset for small businesses with turnover under $10 million. Assets costing $20,000 or more must be depreciated under the general small business pool.
Who is eligible for the instant asset write-off?
Small businesses with an aggregated annual turnover of less than $10 million are eligible. The asset must be first used or installed ready for use in the income year you claim the deduction.
Can I claim the full asset cost if I use it partly for business?
No. You can only deduct the business-use portion. If you use an asset 70% for business, you can deduct 70% of its cost.
Does GST affect the instant asset write-off?
Yes. If you are registered for GST, you claim the write-off on the GST-exclusive cost. If not registered for GST, use the full GST-inclusive price.
What assets qualify for the instant asset write-off?
Most depreciating assets used in a business qualify, including vehicles (up to the car limit), equipment, tools, computers, and furniture. Some assets are excluded such as horticultural plants and in-house software.
Disclaimer: This calculator is based on the 2024–25 instant asset write-off rules. The $20,000 threshold is subject to legislative confirmation each year. This is not tax advice. Consult a registered tax agent or the ATO for eligibility and claim requirements specific to your situation.

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