Under the instant asset write-off, eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used, or installed ready for use.
Instant asset write-off can be used for:
- multiple assets as long as the cost of each individual asset is less than the relevant threshold
- new and second-hand assets.
It cannot be used for assets that are excluded from the simplified depreciation rules.
The instant asset write-off eligibility criteria and threshold have changed over time. You need to check your business's eligibility and apply the correct threshold amount. This depends on when the asset was purchased, first used or installed ready for use. Learn more from ATO
Note, according to ATO rules, the write-off threshold for period 12 March 2020 to 31 December 2020 is $150000 (ie $150K will auto write off by the system). Learn more
Be sure to check date configuration settings first. Learn more
Steps to create Immediate write off in Asset groups.
1. Click Tools and Select Depreciation.
2. In Depreciation window, Click Add button.
3. Update the details
4. Once created, click on the Immediate write off button to add asset
Note: If you are using Simplified Depreciation Rules and wants to use Immediate Write Off deduction. You should create a new asset group as on the screenshot below and add all immediate write-off assets there.
Depreciation rule for $5000 immediate write off for cars cannot be applied for cars bought after 31 December 2013. Click here to know more about
Question: Client would want to write-off 100% the asset from motor vehicle.
Solution: Should use “Immediate write off”
- Currently, write off for the pool balance of less than $150k, is automated once you mark it as SBE (via "Settings > Depreciation) and opt for simplified Depreciation. It's ATO mandatory to write-off general pool balance.
- ATO related link Simpler depreciation for small business
- ATO response - Instant asset write off 2019-20