$20,000 Instant Asset Write-Off Extended for 2025-26
The Australian Government has confirmed a continuation of a valuable tax concession that could help many small business owners reduce their tax bill this financial year.
Under the latest rules, eligible small businesses can claim an immediate tax deduction for most assets costing less than $20,000 if those assets are purchased and installed ready for use between 1 July 2025 and 30 June 2026.
This is a continuation of the “instant asset write-off” concession that’s already been helping businesses with cash flow and investment planning.
What This Means for Your Business
Instead of depreciating an asset over several years, your business can potentially deduct the entire cost of qualifying equipment in one hit, as long as your business:
- Has a turnover of less than $10 million, and
- Chooses to use simplified depreciation rules, and
- Buys and starts using the asset before 30 June 2026.
This opportunity applies on a per asset basis. So if you buy several eligible items (such as tools, technology, office equipment or fit-outs) each costing less than $20,000, you may be able to claim the full cost of each one immediately.
What Doesn’t Qualify?
Assets that cost $20,000 or more won’t qualify for the instant write-off and instead must go into the small business depreciation pool, where you claim deductions over a number of years.
Why This Matters Now
This extension gives small business owners a window of opportunity to invest in their business (whether that’s new tools, equipment or technology) and bring forward tax deductions to improve cash flow this financial year.
Acting before the June 30 deadline could significantly reduce your taxable income for 2025-26, but timing and eligibility matter – especially when an asset must be installed and ready for use, not just ordered.
Take Action Before Time Runs Out
If you’re planning equipment or technology upgrades before the end of the financial year, now’s the time to:
Review your upcoming capital purchases
Check if they qualify under the instant asset write-off rules
Schedule installations to meet the 30 June deadline
Talk to your accountant or tax advisor about the best way to structure these deductions
Need help navigating what this means for your business?
Contact Simmons Livingstone, we can help you make sense of the instant asset write-off, maximise your tax savings and plan the best approach for your business before the 30 June cut-off, call 1800 618 800 or email admin@simmonslivingstone.com.au.
