MAKE THE MOST OF THE $20,000 INSTANT ASSET WRITE-OFF BEFORE 30 JUNE 2026

ith the end of the financial year approaching, small businesses have a valuable opportunity to bring forward planned investments and take advantage of the $20,000 instant asset write‑off, available until 30 June 2026. After this date, the threshold is legislated to drop back to $1,000, unless the government announces a further extension.

For many businesses, this measure can provide a meaningful cash‑flow benefit — but only if the rules are understood and the timing is right.

What the Instant Asset Write-off allows you to do

Eligible small businesses can claim an immediate deduction for the full cost of assets costing less than $20,000 each. Instead of depreciating the asset over several years, the deduction is taken upfront in the year the asset is first used.

This can apply to a wide range of purchases, including:

tools and equipment
technology and office hardware
fit‑out items
commercial appliances
second‑hand assets

Because the threshold applies per asset, businesses can claim multiple items in the same year, provided each one falls under the $20,000 limit.

The rule many businesses miss: installed and ready for use

One of the most important — and often overlooked — conditions is that the asset must be installed and ready for use by 30 June 2026.

Simply placing an order or paying a deposit before year‑end is not enough.

This is where many businesses unintentionally miss out. Delivery delays, installation backlogs, or supplier shortages can push the “ready for use” date into July, meaning the deduction cannot be claimed in the 2025–26 financial year.

If you’re planning to upgrade equipment, vehicles, or technology, it’s wise to factor in:

delivery lead times
installation or setup requirements
supplier availability
potential delays for imported items

Leaving purchases until late June could mean missing the deadline entirely.

Who can access the write-off?

To qualify, your business must:

have an aggregated annual turnover of less than $10 million
be using the simplified depreciation rules
ensure the asset costs under $20,000 (excluding GST if registered)
have the asset installed and ready for use by 30 June 2026

If the asset is partly used for private purposes, only the business‑use portion is deductible.

What about vehicles?

Vehicles require special attention.

Passenger vehicles (those designed to carry fewer than nine passengers and with a load capacity under one tonne) are subject to the car limit, which caps the amount that can be depreciated. However, the instant asset write‑off has its own threshold: if the vehicle costs more than $20,000, it cannot be immediately written off, even if it falls under the car limit.

Commercial vehicles with a load capacity over one tonne, such as many vans and work utes, are not subject to the car limit and may qualify if they cost less than $20,000.