Treasurer Jim Chalmers announced in the May 2026 federal budget that the $20,000 instant asset write-off will become a permanent fixture of the Australian taxation system, ending years of temporary extensions and last-minute legislation.
While the write-off is now permanent, the current eligibility period still expires on 30 June 2026. If your small business has been putting off essential equipment purchases or office upgrades, now is the time to act and take advantage before this deadline.
Here’s everything you need to know to make the most of this tax concession before the deadline.
What Is the Instant Asset Write-Off?
According to the Australian Taxation Office (ATO), the instant asset write-off allows eligible businesses to claim an immediate tax deduction on the business portion of an asset’s cost, rather than depreciating it over several years. This means you can reduce your taxable income now while acquiring assets that support your business growth.
The current threshold sits at $20,000 per asset, and there’s no limit to the number of eligible assets you can write off. If each individual asset costs less than $20,000, you can get the write-off.
For example, if you purchase three laptops at $1,800 each, a printer at $900, and office chairs totalling $4,500, you can write off all these purchases, provided they’re each under the threshold and meet eligibility criteria.
Which Businesses Are Eligible?
To access the instant asset write-off, your business must have an aggregated annual turnover of less than $10 million. This threshold applies to the total ordinary income of your business and any connected or affiliated entities.
Eligible business structures include:
- Sole traders
- Partnerships
- Companies
- Trusts
The asset must be purchased and installed or first used between the legislation’s commencement and 30 June 2026. Simply placing an order isn’t enough; the asset needs to be operational in your business before the deadline.
What Can You Claim for the Asset Write-Off?
Eligible assets span virtually every category of business equipment and tools:
- Office Equipment & Technology: Office furniture including ergonomic chairs, sit-stand desks, and filing cabinets. Technology like laptops, tablets, monitors, and printers.
- Kitchen & Staff Facilities: Kitchen appliances including commercial fridges, microwaves, and coffee machines that support staff wellbeing.
- Cleaning & Equipment: Cleaning equipment, vacuum cleaners, and sanitisation systems.
- Business Tools: Industry-specific tools and equipment such as power tools, measurement devices, safety equipment, and specialised machinery under the threshold.
- Vehicle Accessories: Toolboxes, roof racks, GPS systems, and safety equipment.
- Software: Business software subscriptions and licenses that qualify as depreciating assets.
Assets must be used predominantly or over 50% for business purposes. If an asset serves both business and personal use, you can only claim the business portion.
Smart Strategies for Maximising Your Tax Write-Off
Audit your needs now
Don’t wait until June. Assess what your business requires: what’s outdated, what’s slowing productivity, what would deliver immediate improvements.
Bundle strategically
The $20,000 limit applies per asset. Purchasing items separately rather than as a bundle may allow each to qualify individually. However, the ATO considers items part of a set if they function together. Consult your accountant if uncertain.
Consider timing
The write-off reduces taxable income in the year the asset is installed. If expecting higher profits this financial year, accelerating purchases maximises the deduction’s value.
Include installation costs
The asset cost includes purchase price, delivery, and installation. If an item costs $19,500 and installation adds $400, the $19,900 total still qualifies.
The instant asset write-off shouldn’t drive unnecessary spending. Invest in assets that genuinely improve operations, productivity, or service delivery.
Ask yourself: Does this solve a business problem? Will it generate revenue or reduce costs? Is it aligned with our strategy and budget? If yes, the write-off makes the investment more tax-effective.
Next Steps: Taking Action
Ready to take advantage of the $20,000 instant asset write-off? Here’s your action plan:
- Consult Your Accountant: Discuss eligibility, tax position, and optimal timing with a qualified professional.
- Review Business Needs: Identify equipment or technology requiring upgrade. Prioritise purchases delivering genuine operational benefits.
- Research Options: COS offers an extensive range of workplace and office supplies with next-day delivery across Australia.
- Order With Lead Time: Don’t wait until June. Order now to account for delivery and installation.
- Keep Records: Document purchase dates, costs, and business use percentages for ATO verification.
The Opportunity Ahead
The $20,000 instant asset write-off represents a significant opportunity for Australian small businesses to invest strategically while optimising their tax position. Whether upgrading technology, improving facilities, or acquiring essential equipment, this concession makes investments more accessible and tax effective.
Understanding how to maximise tax refunds and implementing smart EOFY tax planning strategies can help you make the most of every opportunity available to your business.
The deadline is approaching. If you’ve been considering purchases that would strengthen your business, now is the time to act.
