Asset First Used Before 30 June 2027: Worked Examples
Updated 17 October 2026 · General information · 2 min read
General information only, not tax or financial advice. This site is not the ATO. Check ato.gov.au or ask a registered tax agent. Last checked against ATO and Parliament sources: 17 October 2026. Examples use made-up numbers. Dates and amounts marked uncertain should be re-checked.
Short answer: The ATO says the immediate deduction is for assets first used or installed ready for use in the income year. For 2026-27 that is from 1 July 2026 to 30 June 2027, including 30 June itself. Buying or ordering, on its own, is not the event the ATO describes.
Made-up examples
Each row assumes a small business with aggregated turnover under $10 million that uses simplified depreciation. The dollars are invented.
| Situation | Likely treatment (not advice) |
|---|---|
| $2,500 laptop bought 10 March 2027 and used for work that week; 90% business use | Looks eligible. Expected deduction for the business portion: $2,250. |
| $4,000 tool ordered 20 June 2027, delivered 5 July 2027 | Not first used or installed in 2026-27. Expected to fall in 2027-28, which this site does not estimate. |
| $12,000 machine bought 25 June 2027, installed and ready for use on 29 June | Installed ready for use by 30 June. Expected to be claimable in 2026-27 if the other conditions hold. |
| $19,999 asset, 100% business use | Under $20,000: may be eligible for the write-off. |
| $20,000 asset | Not under $20,000: goes to the small business pool, not the instant write-off. |
If the tax rate you want to apply is 25% (a made-up rate, not a bracket in this site), a $2,250 deduction gives an expected tax difference of $562.50. Your rate depends on your own circumstances. A deduction is not a refund of the purchase price.
The write-off helper can repeat that laptop arithmetic. Use “Fill a made-up example”.
Checks before buying near 30 June
- Is the asset for a taxable business purpose, and what share?
- Do you use the simplified depreciation rules?
- Is aggregated turnover under $10 million?
- Keep the invoice and a note of the date first used or installed ready for use.
- Ask a registered tax agent about GST and other conditions. GST treatment of the $20,000 test was not verified.
Questions
Does the ATO treat “ready for use” differently for software or vehicles?
Special cases for software, vehicles and leased assets were not verified.
Should I buy something only for the deduction?
This page does not recommend purchases. A deduction reduces taxable income. It does not repay the cost.
What we could not verify
- Special cases: software, vehicles, leased assets, and GST treatment.
- Business-use apportionment rules in detail.
Sources
- ATO, $20,000 Instant Asset Write-off (last updated 27 August 2026) — ato.gov.au (search excerpt, 17 October 2026)
- ATO, $20,000 instant asset write-off (IAWO) here to stay (last updated 4 September 2026) — ato.gov.au (search excerpt, 17 October 2026)
- Treasury Laws Amendment (Tax Reform No. 2) Act 2026, Schedule 2 — legislation.gov.au (search excerpt, 17 October 2026)