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Maximising Your End-of-Financial-Year Purchases with the Instant Asset Write-Off

Date: 06-05-2026
Instant Asset Write Off

Instant Asset Write-Off 2026 - Alphaweld

The end of financial year is just around the corner, and your small business has a golden chance to reduce tax bills by claiming the instant asset write-off. With the $20,000 limit extended until 30 June 2026, you can immediately deduct the full cost of eligible assets. Planning your purchases now could improve your cash flow and set your business up for smoother operations in the year ahead.

Understanding the Instant Asset Write-off

In April 2025, the government announced a 12-month extension of the $20,000 instant asset write-off limit until 30 June 2026. This measure is now law and provides real support for small business operators across Australia. The scheme allows you to immediately deduct the full cost of eligible assets up to $20,000, reducing your tax burden while improving your working capital position.

Who Can Claim the Write-off

Your business qualifies if it has an aggregated turnover of less than $10 million. You can deduct the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use between 1 July 2025 and 30 June 2026. 

What Happens to Larger Assets

Assets valued at $20,000 or more cannot be immediately deducted. These assets go into the small business simplified depreciation pool. You can depreciate them at 15% in the first income year and 30% each income year after that. Pool balances under $20,000 at the end of the 2025-26 income year can be written off completely.

Leveraging the Instant Asset Write-off

The $20,000 instant asset write-off offers a substantial opportunity for small businesses to help improve operational efficiency and financial health with new machinery, such as welding machines, welding positioners, pipe rotators and fume extraction units.

By understanding and meeting the eligibility criteria, strategically planning asset investments, and ensuring compliance, small businesses can leverage this current government initiative for significant financial and operational benefits.

For more information, visit the ATO's instant asset write-off page.

Please note:

The information in this article is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser.