Case: A sole trader purchased a vehicle in the last week of June 2025 for $32,500.

The client wants to immediately write off $20,000 and keep the remaining value for future depreciation.

Note: LodgeiT follows ATO depreciation rules. Under these rules, you cannot partially apply the instant asset write-off and then depreciate the balance. The full cost of the asset must be treated consistently, either:

  • Claimed entirely as an immediate write-off (if eligible), or

  • Allocated entirely to the small-business pool or general depreciation rules.

How LodgeiT Handle:

When you add an asset and select Immediate Asset Write-Off, LodgeiT will automatically:

  • Apply the full asset cost as an immediate deduction
  • Not allow a partial write-off (e.g., only $20,000 out of $32,500)

This behaviour aligns with ATO guidelines: splitting the cost is not allowed.


Recommended Approach

Since the rules require consistent treatment:

Option 1: Full Immediate Write-Off

  • If the full $32,500 qualifies, LodgeiT will write off the entire amount.

Option 2 : No Instant Write-Off

  • If you don’t want the full deduction,

  • Do not select Immediate Write-Off

  • Add the asset under normal depreciation rules

  • The full cost will go into the chosen depreciation method (e.g., small business pool)

There is no workflow in LodgeiT or ATO rules that allows writing off $20,000 now and depreciating $12,500 later.

ATO Reference

For full details on the $20,000 instant asset write-off rules, visit the ATO guide:
ATO – $20,000 Instant Asset Write-Off
https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/small-business-support-20000-dollar-instant-asset-write-off

If the situation is unclear based on the client’s eligibility, it’s best to contact the ATO directly for final clarification.