Author: ilurah(Newbie)Newbie 5 June 2026
Hi all,
Hoping for some clarity re asset write offs as I keep second guessing myself.
I have been operating as a private practitioner in allied health from April 2026 so have just started making an income (so very much under $10m!). I was previously in paid employment.
I need to purchase a number of items for my new office which would all be 100% for work use and would be used for business purposes immediately. I estimate around $2k for laptop and printer, and then office furniture for around $3k total.
I am just a bit confused whether I can claim these as an instant asset write off or not? I think I meet the criteria but I'm not sure what the simplified depreciation rules are? If I am eligible for an instant asset write off, would it reduce my overall taxable income for the FY, or only my income from being a sole trader?
If I am not eligible, then would there be any benefit in waiting until the new FY if new rules are coming in re instant tax deductions?
Thank you!
7 views
1 replies
Author: Taxduck(Taxicorn)Taxicorn 5 June 2026
Working in allied health your income will be considered as PSI. See what that is below
Claiming deductions when receiving PSI | Australian Taxation Office
According to the link when earning PSI you can claim
The simplified depreciation rules includes the instant asset write off for assets costing $20,000 or less.
Instant asset write-off for eligible businesses | Australian Taxation Office
If you choose to use this to claim these assets then these expenses will reduce your business income. If you make a business loss for the year then whether you can claim this loss off other taxable income depends on the non-commercial losses rules. As below
Non-commercial losses | Australian Taxation Office
The applicable test here that you may pass is the assessable income test. If you do and you meet the income requirement (other income under $250,000) then the loss can be claimed off other taxable income.
If you don't pass any tests (or the income requirement) then the loss is deferred and claimed off business income next year.
