Instant Asset Write-Off in Queensland: What You Can and Can’t Claim
- Apr 1
- 3 min read
If you’re a small business owner in Queensland, the instant asset write-off can be one of the most effective ways to reduce your tax bill and improve cash flow. But there’s often confusion around what qualifies, especially when it comes to tools, utes and machinery. This can leads to missed opportunities or costly mistakes.
What Is the Instant Asset Write-Off?
The instant asset write-off allows eligible businesses to immediately deduct the full cost of an asset in the year it’s first used or installed ready for use, rather than depreciating it over several years.
This is particularly useful for trades, construction businesses and SME’s across Queensland, that are investing in equipment or vehicles.
Who Is Eligible in Queensland?
While the rules are set federally by the ATO, they apply to Queensland businesses if you:
Have an aggregated turnover under the relevant threshold (commonly $10 million, but check current limits)
Use the asset for business purposes
Purchase and install the asset within the eligible timeframe
Always confirm current thresholds, as they can change with each Federal Budget.
What is the threshold?
For the 2024-25 financial year, small businesses that have a turnover of less than $10 million can instantly deduct assets costing less than $20,000.
The $20,000 threshold applies per asset, not in total.
What You Can Claim
Tools & Equipment
You can generally claim:
Power tools (drills, saws, grinders)
Hand tools (spanners, hammers, screwdrivers)
Computers, laptops, phones, office furniture, bags and cases
Toolkits and trade-specific equipment (calculators, cameras, musical instruments, electric clippers and scissors etc)
You cannot claim a deduction for the use of tools or equipment that are being used for private use, or claim for tools and equipment that have been purchased by someone else for you.
Utes & Work Vehicles
Vehicles are one of the most common claims, but there are rules:
You can claim:
Utes and vans primarily used for work
Vehicles carrying tools or equipment
Vehicles with business branding
However, the car limit applies for passenger vehicles. Only the business use portion is deductible
Machinery & Larger Assets
Eligible assets include:
Excavators, bobcats and earthmoving equipment
Manufacturing machinery
Workshop equipment
Farming equipment (common in regional Queensland)
If the asset cost is below the threshold, you may be able to claim it in full immediately.
If the asset is above $20,000, then it is no longer an instant asset write-off. It is then added to your small business depreciation pool and claimed over time, starting with a 15% deduction in the first year and 30% each year after.
What You CAN’T Claim
Personal Use Portion
If an asset is partly used for personal reasons:
You cannot claim the private use portion
You must keep a reasonable record (e.g. logbook) to justify business use
Overestimating business use can trigger ATO review or adjustments
Assets Over the Threshold
If the asset exceeds the instant write-off limit:
It must be depreciated over time using standard depreciation rules
You may still claim deductions annually based on its effective life
The full cost cannot be claimed upfront, even if mostly used for business
Certain Passenger Vehicles
Luxury or passenger vehicles:
May be subject to the car depreciation limit set by the ATO
Cannot always be fully written off, even if under the threshold
Dual purpose vehicles (e.g. SUVs) may be treated differently depending on design and use
Assets Not Installed Ready for Use
Timing matters because you can only claim a deduction once the asset is installed and ready for use, not when it is ordered or paid for.
You can only claim assets that are installed and ready for use within the financial year
Ordering or paying a deposit alone is not enough to qualify
Delays in delivery or setup can push your deduction into the next financial year
The instant asset write-off is a powerful tax tool for Queensland businesses, but only when used correctly. Whether you’re buying tools, upgrading your ute, or investing in machinery, understanding the rules ensures you maximise deductions while staying compliant.
How Rise Accountants Can Help
At Rise Accountants, we work with Queensland businesses every day to ensure asset purchases are claimed correctly and efficiently. Whether you’re unsure if something qualifies for the instant asset write-off or need guidance on depreciating larger assets, we’ll help you apply the rules properly from the start.