Instant Asset Write-Off Calculator Australia
Work out your instant asset write-off (IAWO) deduction for the 2024-25 and 2025-26 financial years. Small businesses with aggregated turnover under $10 million can instantly deduct eligible assets costing less than $20,000 each.
Based on Subdivision 328-D and the 2025-26 federal budget extension of the $20,000 IAWO threshold.
IAWO at $20,000 applies for both 2024-25 and 2025-26.
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 |
| 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.
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.
What is the 2025-26 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 2024-25 and 2025-26. The tax saving is a simple marginal-rate estimate.