Instant Asset Write-off — current threshold and eligibility

Small business entities — aggregated turnover under $10 million — using the simplified depreciation rules. The asset must be installed and ready for use in the year claimed. For the period the threshold has applied, both new and second-hand assets have qualified, and any combination of vehicles, plant, computers, tools, furniture and fit-out.

The threshold applies per asset, not per year — a small business can write off any number of assets each year provided each is under the threshold. Above-threshold purchases go into the simplified depreciation pool at the standard rates instead.

Cars are capped at the luxury car limit even when the IAWO threshold would otherwise allow more — about $69,674 in 2025-26. The cap also applies for GST and depreciation generally. Commercial vehicles (one-tonne utes, vans designed for carrying goods) are not subject to the car limit.

Eligibility depends on the date the asset is first used or installed ready for use, not the order date. Buying gear in late June 2026 but not commissioning it until July puts it in the next financial year — sometimes a planning lever, sometimes a trap.

· Claiming for an asset bought before the entity became GST-registered or before the SBE eligibility started · Forgetting the car limit applies even when the cost is under the IAWO threshold · Not adjusting for private use — the deduction is restricted to the business-use percentage · Claiming an asset that's still in transit at year end — installed-and-ready-for-use is the test · Mixing trading stock with depreciating assets — different rules apply

Before any large equipment purchase late in the financial year — a planning conversation in May or June often saves $1,000+ in tax. We model the IAWO impact, the cashflow and the GST treatment together so you know the after-tax cost of the asset before signing the order.