$20,000 Instant Asset Write-Off 2026: What to Buy and Claim Before 30 June
The deadline is 30 June 2026.
If your business has a turnover under $10 million, you can immediately write off eligible assets up to $20,000 each. That means a full tax deduction this financial year not spread over several years.
But only if the asset is purchased and ready to use before 30 June.
What the Instant Asset Write-Off Actually Means
Normally, when a business buys equipment, the cost is spread across multiple years as depreciation.
The instant asset write-off changes that. Instead of claiming a little each year, you claim the whole cost in the year you buy it.
For a business paying 25% company tax, a $20,000 purchase saves $5,000 in tax immediately.
Who Qualifies
Your business must have an aggregated annual turnover of less than $10 million.
The asset must cost less than $20,000 (excluding GST if you are registered for GST).
The asset must be first used or installed ready for use before 30 June 2026. Ordered but not yet delivered does not count.
There is no limit on how many assets you claim as long as each individual asset is under $20,000.
What Qualifies as an Eligible Asset
Most tangible assets used for business purposes qualify.
Common examples include:
- Computers and laptops
- Printers and scanners
- Tools and trade equipment
- Office furniture
- Kitchen equipment for a cafe or restaurant
- Machinery and manufacturing equipment
- Vehicles that are not passenger cars (Utes, vans, trucks)
The asset must be used in carrying on your business. It cannot be for personal use.
What Does Not Qualify
Some assets are excluded. These include:
- Horticultural plants
- Assets leased to another party
- Assets in the small business pool if you are using the simplified depreciation rules
Passenger cars are subject to the luxury car limit, which is separate from the instant asset write-off.
If you are unsure whether a specific purchase qualifies, check with your accountant before buying.
The Clock Is Running Out
This write-off has been extended multiple times. Right now, it is confirmed through 30 June 2026.
There is no guarantee it will continue after that date. If you have been putting off a business purchase, this week is the time to act.
The asset must be installed and ready to use not just ordered or deposited on.
How to Claim It
You claim the instant asset write-off in your business tax return.
Keep the invoice or receipt. Record the date the asset was first used or installed. Your accountant or bookkeeper will include it in your depreciation schedule and claim it on your return.
If you are GST-registered, the $20,000 threshold is the price excluding GST.
Does the Write-Off Affect Payroll?
Not directly. But it affects your business’s taxable income which affects how much PAYG instalment the ATO expects you to pay next quarter.
If you make a large write-off claim, it is worth telling your bookkeeper or accountant before you pay your next instalment. You may be able to vary the instalment downward.
Frequently Asked Questions
Can I claim multiple assets under $20,000? Yes. The limit applies per asset, not per business. You can claim as many qualifying assets as you purchase this financial year.
Does the asset have to be brand new? No. Second-hand assets also qualify, as long as they meet the other conditions.
Can a sole trader use the instant asset write-off? Yes. It applies to sole traders, partnerships, companies, and trusts with turnover under $10 million.
What if the asset costs more than $20,000? Assets over $20,000 go into the general small business pool and are depreciated over time.
Make the Most of Every Deduction This Year
Clean payroll records and accurate bookkeeping ensure you capture every deduction available to your business.
At Edulink Payroll Services, we manage payroll compliance for small and medium businesses across Sydney and Campbelltown, so your numbers are always accurate, and your tax reporting is always right.
Edulink Payroll Services charges $750 per year, per employee a fixed, all-inclusive price.
Have more employees? Call us for a discounted rate.
📞 Call us today: 04 044 71 816
Edulink Payroll Services | Campbelltown & Greater Sydney | Call 04 044 71 816
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