Business $20,000 instant asset write-off for FY26

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Have you purchased, upgraded or are you purchasing an asset for your business?

If your business has an aggregated annual turnover of less than $10 million, you may be able to use the instant asset write-off (IAWO) to immediately deduct the business portion of the cost of eligible assets which cost less than $20,000.

Eligible assets must have been first used or installed ready for use for a taxable purpose between 1 July 2025 and 30 June 2026. The $20,000 limit applies on a per asset basis, so you can instantly write-off multiple assets.

Examples of Eligible Assets (Under $20,000):
  • Vehicles: Vans, trucks, utes, and cars used for business purposes.
  • Tools & Trade Equipment: Welders ($4,500), excavators, or specific attachments like a new mower deck ($15,000).
  • Office/Tech Equipment: Laptops, computers, printers, and scanners.
  • Fittings & Furniture: Office desks, chairs, lighting, and security systems.
  • Machinery: Factory machinery or agricultural equipment.
  • Specialized Equipment: Coffee machines (for cafes), cash registers, or POS devices.
  • Software: Certain in-house software.

If an eligible small business has previously claimed a deduction for an asset’s cost under the simplified depreciation rules in an earlier income year, they can also immediately deduct the first improvement cost for that asset. This applies as long as the improvement cost was incurred between 1 July 2025 and 30 June 2026 and is less than the $20,000 limit.

The usual rules for claiming deductions still apply, and you must have records to prove your claim.

If you have any questions related to business assets and write-offs, don’t hesitate to get in contact with us at STS Accounting.