To claim the instant asset write-off for a depreciating asset, the depreciating asset's cost must be less than the threshold amount. For example, in the 2023-24 income year the instant asset write-off threshold under the simplified depreciation rules is $20,000. You can’t claim the instant asset write-off for assets that cost $20,000 or more.

Note: There have been changes to the instant asset write-off threshold over the years and there are different rules that have applied under the general depreciation rules. For example, temporary full expensing was available from 6 October 2020 to 30 June 2023.