Instant Asset Write-Off

What is the Instant Asset Write-Off?

The Instant Asset Write-Off policy aims to encourage small business to invest in new equipment and machinery to invest and grow their operations. It enables business to acquire assets and claim an immediate tax reduction, reducing their tax bill by thousands of dollars, whilst also providing cash flow benefits to their business. The limit for this deduction is $150,000 for assets purchased and in use by 30 June 2023.

Who is the Instant Asset Write-Off for?

Majority of Australian business can take advantage of the instant write-off and instantly deduct the full cost of eligible capital assets. The instant asset write-off deduction has a limit of $150,000 and is available to businesses with a turnover of less than $500 million. However, specific eligibility and limitations may apply. It is recommended to consult with your tax professional for more detailed guidance.

Vehicle Instant Asset Write-Off?

Yes, vehicles are included in the instant asset write-off. With second-hand cars also eligible for the instant asset write-off. As of now, the instant asset write-off scheme for motor vehicles in Australia is limited to $64,741 for the 2022-2023 financial year. To be eligible, an asset has to be purchased, used or installed before June 30 in order to claim the instant-asset write off.  This means that you must have the vehicle in your possession and be using it by 30 June in order to qualify.

Please speak to your financial advisor / accountant before making any decision. Further information and examples can be found on the ATO’s website:

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