How to Claim Instant Asset Write-Off for Your Gold Coast Business
Running a business on the Gold Coast comes with its fair share of challenges, but the instant asset write-off can be a real lifesaver come tax time. This handy tax incentive lets eligible businesses instantly deduct the full cost of qualifying assets, rather than spreading it out over the years.
It’s especially valuable for small and medium-sized business owners looking to boost cash flow and reinvest in their operations. Whether you're upgrading equipment or investing in a new business vehicle, understanding how this works could mean big savings.
This no-fuss guide breaks down everything you need to know about the instant asset write-off scheme—from who's eligible, what assets qualify, to how you can claim it the right way and maximise your tax savings.
What Is the Instant Asset Write-Off?
The instant asset write-off is a tax deduction that lets eligible Australian businesses claim the entire cost of certain business assets in the same financial year they’re first used or installed for business purposes.
Instead of depreciating an asset over time, this instant write-off means you can deduct it straight away, helping reduce your taxable income and improving your cash flow.
It’s part of the government’s support tools to help small and medium-sized businesses manage business expenses, invest in growth, and strengthen their financial position.
Who’s Eligible for the Instant Asset Write-Off?
Not all businesses can take advantage of this deduction, so it’s important to check your eligibility.
Your business is eligible if:
You’re a small business with an aggregated turnover of less than $10 million.
You’re using the simplified depreciation rules.
You purchased and used or installed the asset between 1 July 2023 and 30 June 2024.
The individual asset’s purchase price is less than $20,000 (this is the relevant instant asset write-off threshold for the 2023–24 income year).
This applies to sole traders, partnerships, companies, and trusts, provided they meet the income and usage criteria.
Instant Asset Write-Off Thresholds and Dates
The instant asset write-off threshold refers to the maximum amount a business can spend on an individual asset and still claim the full amount as a tax deduction in the year it's first used or installed.
For the 2023–24 income year, the threshold is $20,000. This means eligible businesses with an aggregated turnover under $10 million can instantly deduct the entire cost of any eligible asset priced below that figure.
This threshold applies to each individual asset, not the total value of all purchases, so multiple items under $20,000 can each be claimed. The asset must be first used or installed between 1 July 2023 and 30 June 2024 to qualify.
It's important to note that the Australian Government may adjust the threshold each year, depending on the Federal Budget. So, staying updated on the latest changes, especially for the 2024–25 financial year, is key to making the most of this business concession.
What Counts as an Eligible Asset?
Here’s the good news: both new and second-hand assets may be eligible.
Examples of eligible business assets include:
Commercial vehicles (e.g. utes, vans, trucks)
Computers and office equipment
Kitchen equipment and bar equipment
Air conditioners and commercial ovens
Protective clothing
POS systems and software (unless allocated to a software development pool)
These assets must be used for business use purposes, not for private purposes or investment property.
What Assets Are Excluded?
The ATO (Australian Taxation Office) has clear guidelines on what’s not eligible for the instant write-off:
Assets leased out for more than 50% of the time under an asset lease
Horticultural plants (e.g. grapevines)
Capital works, including buildings and structural improvements
Software allocated to a software development pool
Assets used in R&D activities
Items already allocated to a low-value pool under earlier depreciation rules
If you’re unsure, always get professional advice from a registered tax agent or accountant.
How to Claim Instant Asset Write-Off for Your Business
Claiming the instant asset write-off isn’t as tricky as it sounds, especially when you know what steps to follow. With the right records and a little preparation, you’ll be set come tax time.
Here’s how to claim it:
Check Your Eligibility: Confirm your business has an aggregated turnover under $10 million and uses the simplified depreciation rules.
Identify Eligible Assets: Make sure the asset is used for business purposes, not excluded under ATO rules, and that its purchase price is below the $20,000 threshold.
Use or Install the Asset: Ensure the asset is first used or installed ready for use between 1 July 2023 and 30 June 2024.
Determine the Business Use Portion: If the asset is used for both business and personal use, calculate the business portion (e.g. 80% business, 20% private).
Keep Accurate Records: Maintain proper documentation such as receipts, invoices, logbooks, and bank statements to support your claim.
Include the Deduction in Your Tax Return: When lodging your 2023–24 income year tax return, claim the deduction under the relevant depreciation expenses section.
Seek Professional Advice if Needed: A tax accountant or business advisor can help ensure everything is claimed correctly and in line with your business structure.
Common Mistakes to Avoid When Claiming Instant Asset Write-Off
Even though the process seems straightforward, small errors can cost your business valuable tax deductions. Avoid these common pitfalls to stay compliant and maximise your tax benefits.
Claiming assets over the threshold
Missing the eligible dates
Incorrectly claiming personal-use items
Not using simplified depreciation rules
Poor record-keeping
Understanding the rules and staying compliant is key to making the most of the instant asset write-off.
While your tax advisor handles the claim itself, mortgage brokers can play a crucial role by helping you secure the right business finance or equipment loans to fund eligible asset purchases, making sure your cash flow stays strong while you grow.
Frequently Asked Questions (FAQs)
How does the $20,000 instant tax write-off work?
The instant asset write-off rule allows eligible business owners to claim a full deduction on the purchase price of assets costing less than the relevant threshold of $20,000. This reduces your assessable income, which in turn lowers your tax liability for the income year.
Does the $20,000 instant asset write-off include GST?
If your business entity is registered for GST, the GST-exclusive amount must be under the relevant threshold to qualify. However, if you're not registered, the full purchase price including GST must stay below $20,000 to claim the tax benefit.
What is the $300 asset rule?
The $300 rule allows immediate deductions for asset purchases costing $300 or less, but only for individual taxpayers and not for business use. For business tax write-offs, the $20,000 instant asset write-off is the correct provision to apply.
What is the instant asset write-off for 2023-2024?
For the 2023–24 financial year, businesses with an aggregate turnover under $10 million can claim the entire cost of eligible assets under the $20,000 threshold. The asset must be first used or installed between 1 July 2023 and 30 June 2024.
Why do business people like the instant asset write-off policy?
It provides a quick and valuable tax benefit that improves cash flow and supports investment aligned with business goals. This allows business income to be reinvested into growth through smart asset purchases, like motor vehicle expenses or office equipment.
How to claim immediate deduction ATO?
To claim, eligible businesses must apply the simplified depreciation rules, confirm the asset's effective life, and lodge the deduction in their annual tax return. Assets not meeting criteria are added to the business pool for standard depreciation.
Are second-hand or intangible assets included in the write-off?
Yes, eligible second-hand assets can be claimed if they meet all ATO guidelines and are used for business purposes. However, intangible assets like patents or goodwill are excluded and must follow regular depreciation rules based on effective life.
Final Thoughts: Make the Most of the Instant Asset Write-Off
The instant asset write-off is a smart strategy for Gold Coast business owners looking to reduce tax and invest back into their operations. Whether it's upgrading tools, machinery, or tech, it’s a simple way to align asset purchases with your business goals and enjoy faster tax benefits.
Just be sure to stay within the relevant threshold, keep accurate records, and get the right accounting advice.
If you’re looking to fund new machinery, our experienced mortgage brokers can also assist with tailored equipment and business finance solutions to keep your cash flow healthy. Reach out today—we're here to help you move forward!