$20,000 Instant Asset Write-Off: Last Chance Before 30 June 2026
If your business has been putting off a new laptop, tool, or piece of equipment, the next eleven days matter.
The $20,000 instant asset write-off is law for this financial year. But the asset has to be installed and ready for use by 30 June 2026 to qualify. Miss that date, and the deduction drops sharply.
Here’s what the write-off actually covers, who qualifies, and what to check before the window closes.
What the Instant Asset Write-Off Actually Does
Normally, a business asset gets depreciated. You claim a small portion of its cost each year, spread out over its useful life.
The instant asset write-off skips that. If an eligible asset costs less than $20,000, you can claim the full amount as a tax deduction in the same year you buy it.
That’s a real cash flow advantage. Instead of waiting years to claim the full value, you get the deduction now, in this tax return.
Who Qualifies
This isn’t available to every business. The core eligibility rules are straightforward, but they matter.
Your business needs an aggregated annual turnover under $10 million. You also need to be using the simplified depreciation rules, not the standard depreciation system.
If you opted out of simplified depreciation in a previous year, you may have lost access to this write-off entirely. That’s worth checking with your accountant before you assume you’re covered.
The Date That Actually Matters
Here’s where people get tripped up. It’s not the purchase date that counts.
The asset must be first used, or installed ready for use, by 30 June 2026. An invoice dated in June doesn’t help if the equipment doesn’t arrive and get switched on until July.
If you’re ordering anything with a lead time, like custom equipment or anything requiring installation, this is the week to lock it in.
What Counts as an Eligible Asset
The threshold applies per asset, not per purchase. That opens up more flexibility than most business owners realize.
Tools, computers, office furniture, and work vehicles can all qualify, provided each individual item costs under $20,000. Buy three separate $15,000 items, and all three can be written off in full, as long as each one is used for business purposes.
What doesn’t qualify matters just as much. Assets must be genuinely in use or ready for use for your business, not sitting in a box waiting for next financial year.
What Happens After 30 June 2026
This is the part business owners often miss. Right now, the $20,000 threshold only applies to the 2025–26 financial year.
The government has announced plans to make the $20,000 threshold permanent from 1 July 2026. As of now, that change is not yet law. Until it passes, the legislated threshold reverts to just $1,000 from 1 July.
In short, don’t assume next financial year automatically gives you the same opportunity. Plan around what’s confirmed, not what’s proposed.
A Quick Checklist Before the Deadline
Confirm your turnover eligibility. Aggregated turnover needs to be under $10 million to access the write-off at all.
Check you’re using simplified depreciation. If you’ve opted out previously, this write-off may not apply to you this year.
Get assets installed, not just ordered. The deduction depends on the asset being ready for use by 30 June, not the purchase date.
Talk to your accountant before buying. A deduction is only useful if the purchase makes sense for your business. Don’t buy something purely to use the write-off.
Frequently Asked Questions
Can I claim more than one asset under this write-off? Yes. The $20,000 limit applies per asset, so multiple purchases can each be written off in full if each one stays under the threshold.
What if my asset costs more than $20,000? It doesn’t qualify for the instant write-off. Instead, it gets added to your small business depreciation pool and written off gradually over time.
Does the write-off apply automatically? No. You need to be using simplified depreciation rules and meet the turnover threshold. Confirm both with your accountant or bookkeeper before relying on it.
Will the $20,000 threshold continue next financial year? It’s been announced as a permanent measure from 1 July 2026, but this isn’t law yet. Until it passes, the threshold is legislated to fall to $1,000.
Keep Your Books EOFY-Ready Talk to Edulink
A tax deduction only helps if your books reflect it properly. As the financial year closes, now’s the time to make sure your payroll, records, and reporting are clean and accurate.
Edulink Payroll Services charges $750 per employee, per year, covering payroll, compliance, and reporting, for small and medium businesses across greater Sydney and Campbelltown.
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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