Instant Asset Write-off Calculator

Compares an immediate deduction against the small business simplified depreciation pool, for eligible business assets.

The $20,000 instant asset write-off for FY2026-27 is announced (2026-27 Federal Budget, 12 May 2026) but is not yet law as at July 2026. If the Treasury Laws Amendment (Tax Reform No. 2) Bill 2026 doesn't pass, the threshold reverts to $1,000 for assets first used or installed from 1 July 2026. The $20,000 threshold for FY2025-26 is confirmed law.

FY 2025–26 (confirmed law)

FY 2026–27 (if Bill passes)

FY 2026–27 (if Bill fails)

Rates & assumptions used in this calculator

FY2025-26 threshold: $20,000 per asset, confirmed law under the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025. Applies to small businesses with aggregated turnover under $10 million.
FY2026-27 threshold: the Government announced a permanent $20,000 threshold in the 12 May 2026 Budget, but this is not yet law. The standing legislated default without that Bill passing is $1,000. Both scenarios are selectable above.
Assets at or above the threshold are pooled under the small business simplified depreciation rules: 15% depreciation in the first income year, then 30% of the remaining pool balance each year after (diminishing value).
The instant write-off applies per asset, on a per-asset basis — multiple qualifying purchases in the same year can each be written off individually if each is under the threshold.
Assumes the asset is used 100% for business purposes and is first used or installed ready for use within the selected income year.

Sourced from ATO published guidance and the 2026-27 Federal Budget papers as at July 2026. Given the FY2026-27 threshold is not yet law, verify current status at ato.gov.au before relying on this for a purchase decision.

Asset details

$15,000 cost

Asset cost (ex GST)

Turnover under $10 million?

Yes

Instant write-off

full deduction in year 1

Simplified depreciation pool

year 1 deduction, 15% of cost

Optimize Your Asset Depreciation Schedule?

Calculate depreciation on business assets using diminishing value or straight-line methods. Our accountants structure asset timing and pool strategies to maximize tax deductions while staying ATO-compliant.

Both methods calculated Pool optimization ATO-compliant

This is a general estimate only, not tax advice. It doesn't verify asset eligibility, aggregated turnover, or whether the FY2026-27 threshold has passed into law by the time of purchase. Refer to a registered tax agent before making a purchase decision based on this.