Also called: IAWO, Immediate write-off
Instant asset write-off
The instant asset write-off is a tax measure allowing an eligible business to deduct the full cost of an eligible depreciating asset in the year it is first used or installed ready for use, up to a threshold, rather than depreciating it over several years.
What is an instant asset write-off?
The instant asset write-off is a tax measure allowing an eligible business to deduct the full cost of an eligible depreciating asset in the year it is first used or installed ready for use, up to a threshold, rather than depreciating it over several years.
Example
A business buying a $18,000 machine within an eligible threshold may claim the full amount in that year instead of spreading the deduction.
Why it matters
Thresholds and eligibility change between income years, so confirm the current rules with your accountant before relying on it.