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If your small business has been planning to buy new equipment, upgrade computers, or invest in tools this year — now is the time to act. The $20,000 instant asset write-off is available until 30 June 2026, and it is one of the most valuable tax concessions available to Australian small businesses.
Miss the deadline and you lose the ability to claim the full cost immediately. Here is everything you need to know to make the most of this opportunity before it expires.
The instant asset write-off (IAWO) is an ATO concession that allows eligible small businesses to immediately deduct the full purchase price of assets in the same year they are bought — instead of spreading the deduction over several years through depreciation.
For the 2025–26 financial year:
For a sole trader on a 34.5% marginal rate (including Medicare levy), the saving on the same $15,000 asset would be $5,175 — this financial year.
Almost any tangible asset used in your business qualifies, as long as it costs less than $20,000. Common examples include:
Office and technology
Not everything is eligible. The following are excluded:
The instant asset write-off at the $20,000 threshold has been extended multiple times, but the current extension runs only until 30 June 2026. After this date, the rules revert to previous settings — meaning businesses would need to depreciate assets over their effective life rather than claiming the full cost immediately.
There are two common mistakes businesses make:
Mistake 1: Ordering before June 30 but receiving after. If you order equipment on 28 June but it is not delivered and installed until 3 July, it does not qualify for this financial year. Order early enough to guarantee delivery and installation before 30 June.
Mistake 2: Buying assets over $20,000 and assuming they qualify. An asset costing $21,000 does not qualify for the instant write-off — it goes into the small business simplified depreciation pool instead. If you are buying something close to $20,000, check the GST-exclusive price carefully.
Claiming the instant asset write-off is straightforward if your records are in order:
If you use Xero or MYOB, make sure the asset is coded correctly. Incorrect categorisation is one of the most common errors in EOFY bookkeeping.
Without a further extension (which has not been announced), assets purchased from 1 July 2026 onwards will be subject to standard depreciation rules. For most small businesses, this means assets go into the simplified depreciation pool and are written off at 15% in the first year and 30% in subsequent years — a much slower deduction.
If you have been sitting on a business purchase, buying before 30 June 2026 could save your business thousands of dollars compared to waiting until July.
Between Payday Super, PAYG changes, the instant asset write-off deadline, and tighter ATO data-matching in 2026, this is the most complex EOFY in years for Australian small businesses. Getting your accounting right before June 30 is not just about saving tax — it is about protecting your business from ATO scrutiny.
At Procura Global, we work with Melbourne SMEs year-round to keep accounts clean, claims legitimate, and tax bills minimised. Our team can review your asset purchases, ensure everything is coded correctly, and prepare your business for a stress-free EOFY lodgement.
Procura Global provides trusted accounting, tax, and advisory services that simplify finances, ensure compliance, and support confident business growth.
