For 2025–26, eligible small businesses using simplified depreciation may immediately deduct the business-use portion of eligible assets costing less than $20,000 each. The aggregated turnover eligibility limit is less than $10 million.
The asset must be first used or installed ready for taxable use between 1 July 2025 and 30 June 2026. The cost threshold applies to the asset’s cost before apportioning private use. An asset costing exactly $20,000 does not meet the “less than” threshold.
Exclude GST credits you are entitled to claim when determining the asset’s cost. Keep the invoice, ready-for-use date and business-use calculation. A deduction reduces taxable income; it does not refund the purchase price. Asset exclusions and other eligibility rules still apply.