Instant Asset Write-Off Calculator Australia
Work out your instant asset write-off (IAWO) deduction for the 2025-26 and 2026-27 financial years. Small businesses with aggregated turnover under $10 million can instantly deduct eligible assets costing less than $20,000 each. The 2026-27 threshold has passed both Houses of Parliament but is still awaiting royal assent, so it is not yet law.
Based on Subdivision 328-D. The $20,000 threshold is legislated to 30 June 2026; a bill making it permanent from 1 July 2026 passed both Houses of Parliament on 19 August 2026 without amendment and is now awaiting royal assent.
2026-27: 20,000.00 per asset, for businesses under 10,000,000.00 aggregated turnover. This threshold is in a bill that has passed both Houses of Parliament but is still awaiting royal assent, so it is not yet law.
Your business's aggregated turnover. Must be under $10 million.
Closing pool balance from last year. Leave $0 if you don't have a pool.
Add 2% Medicare levy if a sole trader above the MLS threshold.
Enter GST-exclusive cost if you're GST-registered. Assets under $20,000 deductible cost are instantly written off.
| Asset | Cost | Outcome | Deduction |
|---|---|---|---|
| Laptop | $3,000.00 | IAWO | $3,000.00 |
| Office chair | $600.00 | IAWO | $600.00 |
| Total current-year deduction | $3,600.00 | ||
Tax saving is indicative. Actual benefit depends on your total taxable income, Medicare levy, and whether your business is a company, trust, or sole trader.
Compare IAWO against Division 40 Diminishing Value, Prime Cost, and the SBE pool. NPV is calculated at your supplied discount rate so you can compare present-value tax savings.
GST-exclusive if GST-registered; otherwise GST-inclusive.
Portion used for income-earning activity. 100% for purely business assets.
From ATO effective life tables (TR 2024/1) or your own assessment.
SBE concessions (IAWO + pool) require turnover < $10,000,000.
Sole trader: marginal + Medicare. Company: base-rate (25%) or full (30%).
Your cost of capital or opportunity cost. Higher rate → IAWO wins by a larger NPV margin.
| Path | Total deduction | Tax saving (total) | NPV tax saving |
|---|---|---|---|
| IAWO (instant write-off) | $15,000.00 | $4,800.00 | $4,571.43 |
| SBE Pool (15% year 1, 30% DV) | $15,000.00 | $4,800.00 | $4,386.39 |
| Div 40 Diminishing Value | $14,748.06 | $4,719.38 | $4,218.16 |
| Div 40 Prime Cost | $15,000.00 | $4,800.00 | $4,156.30 |
Estimates only. Entity type (sole trader, company, trust), actual marginal rate, and SBE election status affect real outcomes. Speak to a registered tax agent for personal advice.
| Year | IAWO (instant write-off) | SBE Pool (15% year 1, 30% DV) | Div 40 Diminishing Value | Div 40 Prime Cost |
|---|---|---|---|---|
| Year 1 | $15,000.00 | $2,250.00 | $6,000.00 | $3,000.00 |
| Year 2 | — | $12,750.00 | $3,600.00 | $3,000.00 |
| Year 3 | — | — | $2,160.00 | $3,000.00 |
| Year 4 | — | — | $1,296.00 | $3,000.00 |
| Year 5 | — | — | $777.60 | $3,000.00 |
| Year 6 | — | — | $466.56 | — |
| Year 7 | — | — | $279.94 | — |
| Year 8 | — | — | $167.96 | — |
Shows the annual deduction under each path. Multiply by your marginal rate for tax saving.
What is the 2026-27 instant asset write-off threshold?
Who is eligible for the instant asset write-off?
What happens to assets over $20,000?
Can I claim IAWO on a second-hand asset?
Is IAWO always better than normal depreciation?
Tax Accuracy & Sources
Calculates the $20,000 instant asset write-off and small business simplified depreciation pool outcomes for 2025-26 and 2026-27. The 2026-27 threshold follows the bill that has passed both Houses of Parliament but is still awaiting royal assent, so it has not yet passed into law. The tax saving is a simple marginal-rate estimate.