Free Australian tax & business calculators

Instant asset write-off savings calculator

Before buying equipment for a tax deduction, check the cash you still have to spend. This tool separates the GST credit from the deduction and its possible tax benefit.

Before you start: An illustration for one ordinary eligible asset under simplified depreciation. It cannot establish eligibility. The income-tax saving uses an assumed flat rate, not a complete personal or company assessment.

01 / Your numbers

Make it your estimate

All amounts are AUD. An example is loaded; replace it with your figures.

View the current estimate ↓Financial yearFull asset purchase price, including any GST (AUD)Include relevant acquisition costs. Enter the whole asset price before private-use reductions.GST treatmentExpected business use (%)Aggregated annual turnover (AUD)Have you confirmed simplified depreciation and asset eligibility?Includes being a small business entity and first using or installing the asset ready for use in the selected year.Taxable income before this purchase deduction (AUD)Assumed income tax saving rate (%)For example 25 for an eligible base rate company. Sole traders crossing brackets need a full before-and-after tax estimate.

Your figures stay in this page. We count tool usage, but never send your amounts to analytics or save them to a server.

02 / Your estimate

Immediate write-off not established

$0.00

check eligibility or the depreciation rules

2026-27 financial year

How the estimate adds up

Full asset cost for the threshold test: $10,000.00
Business-use GST credit assumed: $1,000.00
Immediate deduction modelled: $0.00
Deduction absorbed by current taxable income: $0.00
Purchase outlay less GST credit and modelled tax saving: $10,000.00

Read before using this result

Confirm the business and asset eligibility checks before an immediate deduction is modelled.
Use for a single ordinary depreciating asset first used or installed ready for business use during the selected financial year. Confirm that simplified depreciation applies. Cars subject to cost limits, leased assets, capital works, pools and special exclusions need separate calculations.
The asset's full cost must be strictly below $20,000 before reducing it for private use. The GST-credit option assumes a fully taxable 10% purchase and credits for the business-use share. Choose no GST credit for a GST-free purchase; partial credit restrictions need a separate calculation.
A deduction reduces taxable income; it does not refund the purchase price. The saving uses your chosen constant tax rate and current positive taxable income. It does not model personal tax brackets, offsets, levy or HELP changes, future use of losses, or loss carry-back refunds.
The $20,000 threshold became permanent for eligible assets first used or installed ready for use from 1 July 2026 under the Tax Reform No. 2 Act 2026. The turnover threshold remains below $10 million.

The price test comes before private use

An eligible asset must cost less than $20,000 under the applicable GST treatment. An asset costing exactly $20,000 does not meet that test. Reducing a $25,000 asset to 50% business use does not turn it into an eligible $12,500 purchase.

The $20,000 threshold is permanent for eligible assets first used or installed ready for use from 1 July 2026, following the Tax Reform No. 2 Act 2026. For 2025-26, the $20,000 threshold also applies. You still need to satisfy the small business and simplified-depreciation rules.

A deduction does not pay for the equipment

Suppose an eligible company buys an $11,000 GST-inclusive asset for 100% business use and can claim the $1,000 GST credit. Its deduction is $10,000. With enough taxable income and a 25% tax rate, the income tax saving is $2,500, leaving an illustrative after-tax cost of $7,500.

Those benefits may arrive at different times. You still need to fund the purchase, and the tax saving depends on your circumstances. If the deduction exceeds this year's taxable income, the tool does not treat the excess as an immediate cash refund.

When this simple model is not enough

Cars with cost limits, pools, capital works, special GST restrictions and changes in business use need separate treatment. An ineligible immediate write-off may still qualify for depreciation; a zero here does not mean no deduction is ever available.

For a sole trader, a deduction can move income across tax brackets and affect offsets or levies. The selected constant tax rate is an illustration. Compare complete before-and-after taxable income figures with a registered tax agent before making a purchase on tax grounds.

Your next step

Sources and calculation scope

Rules checked 19 September 2026. These are general planning tools, not personal tax advice. A registered tax agent can check how the rules apply to your business.

Found a calculation that needs checking? Tell us which tool and financial year you used. Please leave out tax file numbers and private financial records.