$20,000 Small Business Instant Asset Tax Write-Off.

​

ATO Instant Asset Write-Off Extended to 30 June 2026 – What Small Businesses Should Know

The Australian Taxation Office (ATO) has confirmed that the instant asset write-off threshold of $20,000 will remain in place for the 2025–26 financial year, allowing eligible small businesses to claim immediate deductions for qualifying purchases up to 30 June 2026. 

What the Write-Off Means

Under current rules, small businesses with an aggregated turnover under $10 million can immediately deduct the business portion of the cost of eligible assets costing less than $20,000 in the year the asset is first used or installed ready for use. 

This concession applies on a per-asset basis, so multiple assets under the threshold can be written off in the same financial year. 

Eligibility Criteria

To claim the instant write-off:

• Your business must qualify as a small business under ATO rules (typically turnover less than $10 million). 

• The asset must be first used or installed ready for use by 30 June 2026. 

• Each asset must cost less than $20,000. 

What You Can Claim

Assets that may qualify include:

• Office equipment and technology

• Tools and machinery

• Furniture and fittings

• Some vehicles and other business equipment (subject to specific limits and rules regarding private use) 

Practical Tips

• Ensure assets are installed and ready for use before 30 June 2026 — simply ordering them isn’t enough.

• Keep detailed records, including invoices and installation dates.

• Consult your tax adviser to confirm eligibility and how the write-off applies to your circumstances.

This extension gives small businesses flexibility to invest in equipment and technology and claim the full deduction in the current income year instead of depreciating costs over time. 

​

More information or to check eligibility - https://www.ato.gov.au/businesses-and-organisations/small-business-newsroom/20000-instant-asset-write-off-for-2025-26