Immediate Asset Write Off’s for Businesses

Article by Katrina Brennan


Businesses with an aggregated turnover of less than $5 billion can fully expense the cost of new depreciable assets and the cost of improvements to existing eligible assets in the first year of use.

Date of effect 6th October 2020 and first used or installed by 30th June 2022.

You can choose as to whether you apply on an asset by asset basis.

  • This means that an asset’s cost will be fully deductible upfront rather than being claimed over the asset’s life.
  • While many businesses were already eligible for an instant asset write-off for asset purchases of up to $150,000, this measure does not cap the asset’s cost, and eligibility for the higher instant asset write-off has been significantly broadened and extended (the existing $150,000 instant asset write-off applies to businesses with turnover less than $500 million and will not apply to purchases after December 31, 2020).
  • For businesses with an aggregated turnover under $50 million, full expensing applies to second-hand assets.

For more information please contact our office on (07) 3490 9988 or (07) 5301 9957.