Instant Asset Write-off Calculator
Immediate deduction or pool placement for practice equipment and assets.
Asset details
Cost should be GST-exclusive if you are registered for GST.
$20,000 threshold extended for small businesses with aggregated turnover under $10 million.
Cap: $10,000,000
Asset was first used or installed ready for use in this income year.
Eligible
Asset cost is within the $20,000 instant asset write-off threshold.
- Business portion
- $15,000
- Immediate deduction
- $15,000
- Total first-year deduction
- $15,000
- Tax saving @ 25%
- $3,750
- Tax saving @ 30%
- $4,500
The instant asset write-off lets eligible businesses deduct the full cost of an asset in the year it is first used, rather than depreciating it over several years. For medical practices buying equipment, fit-outs or vehicles, the difference between immediate and pooled treatment can be thousands of dollars in first-year tax savings.
Who is eligible
Your aggregated annual turnover must be below the threshold — currently $10 million for the $20,000 write-off. The threshold has changed over time and may change again, so always check the current year before purchasing.
The asset must be first used or installed ready for use in the income year you claim it. Buying an asset in June but not unpacking it until July pushes the deduction into the next financial year.
Second-hand assets are generally eligible for small businesses, but the rules differ for larger turnover bands. If you are near the threshold, check before you buy.
What happens when the asset is over the threshold
Assets that cost more than the instant write-off threshold are placed in the general small business pool. The pool gives you 15% of the cost in the first year and 30% in each subsequent year on the declining balance.
The pool continues until the balance drops below $20,000, at which point you can deduct the remainder immediately. That means even expensive assets eventually get fully deducted, just not all at once.
Business use percentage matters
You can only deduct the business portion of the asset. If a vehicle is used 70% for practice visits and 30% personally, only 70% of the cost goes into the write-off or pool.
Keeping a logbook is the safest way to substantiate the business percentage. Estimates are allowed but must be reasonable, and the ATO can ask for evidence.
Frequently asked questions
Is the $20,000 instant asset write-off permanent?
Yes. From 1 July 2026 the $20,000 threshold is permanent, legislated under the Treasury Laws Amendment (Tax Reform No. 2) Act 2026. It applies per asset, and multiple assets can be written off in the same year.
What happens to an asset that costs more than $20,000?
It goes into the simplified depreciation pool: 15% of the cost in the first year and 30% each year after on the declining balance. Pool balances under $20,000 at year end can be written off immediately.
What turnover do I need to be eligible?
Your aggregated turnover must be under $10 million. Aggregated turnover includes the turnover of related entities, so a practice that looks small on its own can exceed the cap once its group is counted.
Related calculators
This calculator provides general information only and is not tax advice. It does not account for your individual circumstances. Confirm figures against the relevant legislation or with a registered tax agent before relying on them for a lodgement.
Reviewed by eHealth Systems Pty Ltd