Instant Asset Write-Off for Dentists (2025-26 Financial Year)
Eligible small businesses may be able to immediately deduct the business portion of eligible assets costing less than $20,000 each under the ATO's Instant Asset Write-Off rules for the 2025-26 financial year.
To qualify, the asset must generally be first used, or installed ready for use, by 30 June 2026. Eligibility criteria apply and businesses should confirm their circumstances with a qualified accountant before making any purchasing decisions.
For detailed information, visit the official ATO Instant Asset Write-Off page: ATO Instant Asset Write-Off Information.
Disclaimer: This information is general in nature and does not take your personal, financial or business circumstances into account. Tax laws, eligibility requirements and instant asset write-off thresholds may change. Adam Dental Supplies does not provide tax, financial or legal advice. Dentists and practice owners should seek advice from a qualified accountant or tax adviser before making any purchasing decisions based on tax outcomes.
What Is the Instant Asset Write-Off?
The Instant Asset Write-Off allows eligible small businesses to immediately deduct the business-use portion of certain depreciating assets that cost less than $20,000 each.
For dental practices, this may include eligible equipment, instruments and other business assets used within the practice.
Rather than claiming depreciation deductions over several years, eligible businesses may be able to claim an immediate deduction in the year the asset is first used or installed ready for use.
The following examples may qualify if both your business and the asset meet current ATO requirements:
- Dental chairs and operator stools
- Sterilisers and ultrasonic cleaners
- Compressors and suction units
- Curing lights and whitening lights
- Intraoral cameras and small imaging devices
- Composite warmers and other powered devices
- Surgery trolleys and selected fit-out items
- Examination and diagnostic instrument kits
- Periodontal instruments and scalers
- Surgical and extraction instrument sets
- Endodontic instrument kits
- Restorative and prosthodontic instrument sets
- Instrument cassettes and trays
The tax treatment of individual items can vary depending on cost, expected life, business use and accounting treatment. Always seek professional advice before relying on any tax outcome.
Simple 1-2-3 Guide for Dentists
1. Choose What Your Practice Needs
Consider the equipment and instruments your practice genuinely needs, such as:
- Dental chairs
- Sterilisers
- Compressors
- Curing lights
- Instrument kits
- Surgical sets
Focus on purchases that improve patient care, safety, productivity or workflow efficiency.
2. Check With Your Accountant
Before purchasing, provide your accountant with:
- The products you intend to purchase
- The cost of each item
- When you expect the assets to be delivered and used
Ask them to confirm:
- Your eligibility for the Instant Asset Write-Off
- Whether the assets qualify under current rules
- The amount you may be able to claim
Do not rely solely on general information online, as tax rules, thresholds and eligibility requirements may change.
3. Purchase, Install and Keep Records
Once you have received professional advice, ensure your assets are delivered, installed and ready for use within the required timeframe.
Keep records including:
- Invoices and purchase documentation
- Delivery records
- Installation records where applicable
- Finance or lease documents
Your accountant can then apply the appropriate deduction or depreciation treatment when preparing your tax return.
Key Eligibility Requirements (2025-26 Financial Year)
- Your business generally must have an aggregated turnover of less than $10 million.
- Each eligible asset must cost less than $20,000.
- The asset must be first used or installed ready for use by 30 June 2026.
- The deduction generally applies only to the business-use portion of the asset.
- Multiple eligible assets may qualify because the $20,000 threshold applies per asset.
- Eligibility requirements and thresholds can change, so always confirm your circumstances with your accountant.
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