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The higher Instant Asset Write-Off (IAWO) threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write‑off multiple assets.

Eligibility


Eligibility to use instant asset write-off depends on:

  • your aggregated turnover (the total ordinary income of your business and that of any associated businesses)
  • the date you purchased the asset and it was first used or installed ready for use
  • the cost of each asset being less than the threshold.

The criteria have changed over time so make sure you check whether your business is eligible.

From 1 July 2020 the instant asset write-off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000.

Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off.

Timing


This applies from 12 March 2020 until 31 December 2020, for new or second‑hand assets first used or installed ready for use in this timeframe.

How to apply


The instant asset write-off eligibility criteria and threshold have changed over time. You need to check your business's eligibility and ensure you apply the correct threshold amount as stated by the Australian Taxation Office (ATO).

Learn more about the increasing the Instant Asset Write-Off.

Examples of how the instant asset write-off can help your business


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