"I bought a new laptop for the business, can I just write the whole thing off?" Usually, yes, and the instant asset write-off is exactly the rule that lets you. Here's what it actually covers, because "instant write-off" gets thrown around a lot more loosely than the real rule allows.
The current rule
If your business has an aggregated annual turnover under $10 million, you can immediately deduct the full cost of an eligible depreciating asset costing less than $20,000, rather than depreciating it over several years. This applies on a per-asset basis, so if you buy three pieces of equipment at $8,000 each, all three can be written off immediately, even though the total is well over $20,000.
Good news for planning ahead: this $20,000 threshold was made a permanent feature of the tax system from 1 July 2026, rather than something that needs re-announcing (and re-worrying about) in every year's Budget the way it did for several years running.
What actually counts as "eligible"
The asset needs to be first used, or installed ready for use, for a taxable purpose within the relevant income year. Both new and second-hand assets can qualify, though some specific exclusions apply (certain assets are always depreciated under their own rules regardless of cost). If you're not sure whether something you're planning to buy qualifies, it's worth checking before the purchase rather than after, particularly for anything unusual or industry-specific.
What happens above $20,000
Anything costing $20,000 or more doesn't disappear from your deductions, it just goes into the small business depreciation pool instead, where it's written off over time at set rates rather than all at once. It's a different timing outcome, not a lost deduction.
The mistake we see most often
The most common misunderstanding isn't about the threshold, it's about timing. The asset has to be first used or installed ready for use within the income year you're claiming it in, not just paid for or ordered. An asset bought in June but not delivered and set up until the following July falls into the next financial year's claim, not the one you were planning on. If you're doing EOFY purchasing specifically to bring a deduction forward, timing the delivery matters as much as timing the invoice.
Quick eligibility check
- Business turnover under $10 million? ✓ needed
- Asset costs under $20,000? ✓ needed
- First used or installed ready for use in the claim year? ✓ needed
- Not one of the specifically excluded asset types? ✓ worth checking if unsure
This is general information, not personal advice for your situation — some assets and structures have specific rules that change the answer. [Book a Consultation] before a big purchase if the timing matters to you.