Instant Asset Write-Off for Vehicles: A Guide for WA Tradies

The instant asset write-off lets eligible small businesses claim an immediate tax deduction for the business portion of an asset that costs less than $20,000. The ATO's limit is $20,000 for assets first used or installed ready for use on or after 1 July 2023, for small businesses with aggregated turnover under $10 million. Most new work utes, vans and trucks cost $20,000 or more, so they usually fall outside the instant write-off and go into the small business pool instead. This is general information only. Speak to your accountant about your own tax.

By Tom Dihm, Director, Greenside Finance. Last updated: 5 October 2026. Threshold and dates checked against ATO pages on 5 October 2026.

What is the instant asset write-off?

It is a tax rule for small businesses. Instead of deducting the cost of an asset slowly over several years (depreciation), an eligible business can deduct the business-use portion in the year the asset is first used or installed ready for use.

The current rules, in short

• Threshold: $20,000 per asset. It applies to each asset, so a business can claim for more than one asset in a year.
• Who can use it: small businesses with aggregated annual turnover under $10 million.
• Timing: the ATO lists the $20,000 limit for assets first used or installed ready for use on or after 1 July 2023. Earlier years had different limits, so the year you first use the asset matters.
• Business use only: you can claim the business portion. Private use is not deductible.
• Assets of $20,000 or more: these generally go into the small business simplified depreciation pool, with a first-year deduction of 15% and 30% in later years.

Rules and thresholds can change. Check the ATO page or ask your accountant for the current position before you buy.

Does the write-off apply to vehicles?

Sometimes, but not often for a new work vehicle. Three things matter.

1. The price. A ute that costs $20,000 or more does not qualify. The test is the whole cost, not just the business-use portion for the instant write-off. Cheaper used vehicles, trailers and tools can.
2. The car limit. Vehicles treated as "cars" for tax have a separate cost limit for depreciation. Many dual-cab utes and vans are not treated as cars, but it depends on the vehicle's design and carrying capacity. Your accountant can confirm.
3. Whether the price includes GST. Whether the threshold is applied to the GST-inclusive or GST-exclusive price depends on whether you are registered for GST.

For many WA tradies, the practical effect is that equipment, tools, trailers, and lower-cost vehicles are the best fit for the write-off. Bigger vehicles are more likely to follow the pool or standard depreciation.

How finance fits with a write-off

You do not need to pay cash to claim a write-off. If you buy an asset with finance and own it from day one, as with a chattel mortgage, you can generally claim depreciation as the owner. Interest on the business-use portion is generally a separate deduction. How you claim depends on your business structure and your accountant's advice.

Different finance products have different tax treatments. A chattel mortgage or hire purchase and a lease can be treated differently for income tax and GST, so ask your accountant which fits before you sign. We arrange finance, we do not give tax advice.

What we can help with

• Ute finance for tradies and small business owners.
• Equipment finance for tools, trailers and machinery.
• Commercial car loans for business vehicles.
• Low-doc loans if your tax returns are not up to date.

We work with 40+ lenders, are Perth-based and lend Australia-wide.

Questions to ask your accountant before you buy

1. Is my business under the $10 million turnover limit?
2. Does this vehicle count as a "car" for tax?
3. Would this asset be written off instantly or go into the pool?
4. How much of the use will be for business?
5. Which finance structure suits my tax position?
6. What do I need to keep as records?

Buying close to 30 June does not guarantee a deduction. The asset must be first used or installed ready for use in that income year, so timing matters. Ask your accountant.

Common questions

What is the instant asset write-off threshold now?

$20,000 per asset, for assets first used or installed ready for use on or after 1 July 2023, for small businesses with aggregated turnover under $10 million. Checked 5 October 2026.

Can I claim a new ute under the instant asset write-off?

Only if the cost is under the threshold. Most new utes cost more, so they generally follow other depreciation rules. Your accountant can confirm.

Can I use the write-off if I finance the vehicle?

Often yes, if you own the asset and use it in your business. The structure of the finance matters, so check with your accountant first.

Does the write-off apply to private use?

No. Only the business-use portion qualifies.

Do you give tax advice?

No. We are finance brokers. Tax questions go to your accountant.

Planning a purchase? Tell us what you are buying and we will show you finance options to take to your accountant. Get a free quote.