What is the instant asset write-off?1

  • It's a one-off tax deduction businesses can claim for business equipment purchases
  • The current threshold is $150,000 for each asset first used or installed and ready for use between 12 March and 31 December, 2020
  • Claim your deduction in the same financial year you finance the equipment
  • You may be able to claim more than one asset as long as each individual asset is below the $150,000 limit
  • You can borrow to fund the purchase of equipment and still claim a 100% deduction for the cost of eligible items

Does my business qualify?

  • To qualify, your business must have an aggregated turnover of less than $500 million

Can I buy anything I want?

  • You can claim new or used assets up to the value of $150,000 each. 
  • The write-off is only available where the asset is used for business purposes
  • Not every purchase or expenditure may qualify, so you'll need to seek your own independent taxation advice before buying

 

What if the equipment I want costs more than $150,000? 

  • Speak to an accountant or tax advisor if your equipment costs more than $150,000
  • You may be able to use the new 15 month investment incentive1, which allows a deduction for 50% of the cost of a new asset
  • Existing depreciation rules apply to the balance of the asset's cost

You can borrow and still claim the write-off

You may still be able to claim a deduction if you have the title to the goods – using a chattel mortgage or equipment loan, for example, rather than a lease arrangement.

You can also use the same finance facility to buy several assets and claim the deduction on all of them provided each individual whole item costs less than $150,000. 

Hold on to your cash

  • Borrow using the equipment you purchase as security
  • No deposit required 
  • No monthly fees

Take advantage of low interest rates

  • Additional discounts available for Energy Efficient cars and equipment

See Energy Efficient Equipment Discount

Benefit from flexibility

  • Payments can be structured to your business’s cash flow
  • You can lower repayments by structuring a balloon/residual payment at the end  of a 2-5 year payment period

How might it work? 

Emma owns a carpentry business with a turn-over of less than $150 million.

In late March 2020, she decides to upgrade one of her work trucks and her factory lathe machinery.

Emma spends $75,000 on her new light truck and $140,000 on used lathe equipment.

In preparing her tax return for the year ending 30 June 2020, Emma should be entitled to claim $215,000 as a one off, immediate tax deduction within that financial year.

Note: All amounts, rates and calculations shown above are examples only and are not necessarily complete or accurate. 

How to finance

Equipment loan (chattel mortgage)

Our most popular finance option. You own the equipment and pay it off over time.

Go to Equipment loan

Hire purchase

You hire the equipment from the Bank while you pay it off.

Go to Hire purchase

Who can apply?

You can apply if your business has: 

  • Traded for more than 12 months
  • A good credit rating 
  • Not undergone or undergoing bankruptcy
  • Other existing accounts in good standing with the Bank

To apply, you'll need to be:

  • Aged 18 years or over
  • Eligible to work in Australia
  • An individual, sole trader, sole owner of your company or someone authorised to apply for finance and credit for a business
  • Financing equipment that will be used by a business (mostly or entirely for business purposes)

Apply in four easy steps

Our Equipment Finance team can talk to you over the phone, online or meet you in person at a time that suits you.

1

Get a quote online

We’ll give you a breakdown of the costs and interest. We'll need to know:

  • What you want to finance
  • How old it is
  • The finance amount

2

Simple application

Eligible CommBank customers can receive a conditional credit decision2 online (otherwise we'll call you to process your application).

3

Sign your documents online

When your application is approved you can sign your finance agreement online, using our SmartSign paperless technology.

4

Get funding within four hours of signing

Leave the rest with us and we’ll transfer the money to your supplier within four hours of you signing your agreement online.

Things you should know

This information is current as at 29 April 2020, and is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should consider the appropriateness of this information to your circumstances before acting on it.

Credit provided by the Commonwealth Bank of Australia. These products are only available to approved business customers and for business purposes only. Applications for finance are subject to the Bank's eligibility and suitability criteria and normal credit approval processes. Individuals should view our current Terms and Conditions for Asset Finance and consider them before making any decision about these products. Rates are subject to change.  

Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.

1 This is provided it is depreciable under Division 40 of the Income Tax Assessment Act 1997, is acquired after 12 March and first used or installed by 31 December 2020. For more information, visit the Government’s write-off threshold support page or go to the instant asset write-off page at the ATO website.

You can apply for conditional approval in NetBank if you’re an existing CommBank business customer who is a sole trader or the single director of a company that has been operating for at least 12 months. Fees, charges, terms, conditions and lending criteria apply.