This user guide and accompanying video demonstrate how to process an immediate asset write-off within a Company Tax Return (CTR). It covers:
  • Adding the Immediate Write Off Group
  • Adding the asset to the group
  • Reconciling the write-off amounts into financial accounts
  • Reviewing final depreciation values inside the tax form



Under the instant asset write-off, eligible businesses can claim an immediate tax deduction for the business-use portion of the asset's cost. This deduction applies in the specific income year the asset is first used or installed ready for business use.

Instant asset write-off can be used for:

  • Multiple assets, provided the individual cost of each asset sits below the active threshold
  • Both brand-new and second-hand depreciating assets.

It cannot be claimed on assets explicitly excluded from ATO Simplified Depreciation Rules.

T: Eligibility and threshold limits change over time based on the asset's purchase and installation dates. Verify your business's eligibility guidelines directly via the ATO Website. Learn more from ATO

Small Business Entities (SBE) Tax Rates, Reconciliation and Simpler Depreciation - Company Tax Return

The system automatically writes off assets up to $150,000 for the historical period of 12 March 2020 to 31 December 2020, in accordance with COVID-19 stimulus measures.

However, for current tax reporting periods, the Australian Taxation Office (ATO) has lowered these thresholds. For the 2024–25 and 2025–26 financial years, the active instant asset write-off threshold is $20,000 per eligible asset for small businesses with an aggregated turnover under $10 million.


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 want to apply an Immediate Write Off deduction, you must create a dedicated asset group as shown in the screenshot below. Ensure all eligible immediate write-off assets are added directly to this group.


The historical $5,000 immediate depreciation rule for motor vehicles applies exclusively to vehicles purchased on or before 31 December 2013. It cannot be applied to any vehicles purchased after this date. For modern vehicle write-offs, verify your assets against current active ATO Instant Asset Write-Off thresholds. Click here to know more about




Example

Question: The client intends to claim a 100% immediate tax deduction for this motor vehicle asset.

Solution:  Should use “Immediate write off”


Notes:

  • The software automatically writes off your small business pool balance when it falls below the mandated Australian Taxation Office (ATO) thresholdprovided your entity settings are correctly configured (via "Settings > Depreciation)
  • ATO related  link Simpler depreciation for small business




Related article:

Small Business Entities (SBE) Tax Rates, Reconciliation and Simpler Depreciation - Company Tax Return

Depreciation Rules

General Pool Depreciation Write-off