{"id":16651,"date":"2026-04-28T09:40:47","date_gmt":"2026-04-28T04:10:47","guid":{"rendered":"https:\/\/befreeltd.com\/au\/?p=16651"},"modified":"2026-04-30T15:19:46","modified_gmt":"2026-04-30T09:49:46","slug":"australian-small-businesses-instant-asset-write-off","status":"publish","type":"post","link":"https:\/\/befreeltd.com\/au\/resources\/blogs\/australian-small-businesses-instant-asset-write-off\/","title":{"rendered":"Instant Asset Write-Off 2025\u201326: What Australian Small Businesses Need to Know"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"16651\" class=\"elementor elementor-16651\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-684f1151 e-flex e-con-boxed e-con e-parent\" data-id=\"684f1151\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7f80aa8c elementor-widget elementor-widget-text-editor\" data-id=\"7f80aa8c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>If you run a small business in Australia, the instant asset write-off is one of the most useful tax breaks available to you right now. It is also one of the most underused.<\/p><p>The good news? As part of the 2025 Federal Budget, the Australian Government extended the small business instant asset write-off, keeping the threshold at $20,000 &#8211; the $20k instant asset write-off &#8211; through to 30 June 2026. That means you still have time to make the most of it before the financial year ends.<\/p><p>Here&#8217;s everything you need to know, in plain English.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6b65fd91 elementor-widget elementor-widget-heading\" data-id=\"6b65fd91\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Is the Instant Asset Write-Off?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-79be99ff elementor-widget elementor-widget-text-editor\" data-id=\"79be99ff\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The ATO instant asset write-off is a tax deduction that lets eligible small businesses claim the full cost of an asset in the same year they buy and use it, instead of spreading the deduction over several years through depreciation.<\/p><p>In simple terms: buy an asset for your business, use it before 30 June 2026, and deduct the full cost from your taxable income that same year. Less taxable income means a lower tax bill.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dd13f5d elementor-widget elementor-widget-heading\" data-id=\"dd13f5d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Is the Instant Asset Write-Off Threshold for 2025-26?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f7e62ed elementor-widget elementor-widget-text-editor\" data-id=\"f7e62ed\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>For the 2025\u201326 financial year, the $20,000 instant asset write-off threshold sits at $20,000 per asset (excluding GST).<\/p><p>This limit applies per asset and not as a total. So if you purchase three eligible assets each under $20k, you can claim all three immediately.<\/p><p>Any asset costing $20,000 or more cannot be claimed under this scheme. Instead, it goes into the small business pool and is depreciated at 15% in the first year and 30% each year after that.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0030ede elementor-widget elementor-widget-heading\" data-id=\"0030ede\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Who Is Eligible for the Instant Asset Write-Off 2025\u201326?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5ea4305 elementor-widget elementor-widget-text-editor\" data-id=\"5ea4305\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>To claim the small business instant asset write-off in 2025\u201326, your business must:<\/p><ul><li>Have an aggregated annual turnover of less than $10 million<\/li><li>Apply the simplified depreciation rules<\/li><li>Have the asset first used or installed, ready for use, between 1 July 2025 and 30 June 2026<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-49cb21a elementor-widget elementor-widget-text-editor\" data-id=\"49cb21a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tBoth new and second-hand assets qualify, as long as they meet the above conditions.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-228457c elementor-widget elementor-widget-heading\" data-id=\"228457c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Assets Can You Claim Under the Instant Asset Write-Off?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9b58ed9 elementor-widget elementor-widget-text-editor\" data-id=\"9b58ed9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>A wide range of business assets is eligible. Common examples relevant to Australian SMEs include:<\/p><ul><li>Restaurants &amp; cafes: commercial kitchen equipment, coffee machines, point-of-sale systems<\/li><li>Retail stores: display shelving, computers, storage equipment<\/li><li>Clinics &amp; salons: treatment chairs, specialist tools, booking software, hardware<\/li><li>Tradies &amp; service businesses: power tools, work equipment, safety gear<\/li><li>All businesses: laptops, printers, office furniture, software (where it qualifies)<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fa566bf elementor-widget elementor-widget-text-editor\" data-id=\"fa566bf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Both new and second-hand assets are eligible under the scheme.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-32a64b51 elementor-widget elementor-widget-heading\" data-id=\"32a64b51\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Assets Are Excluded From the Instant Asset Write-Off? <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-69d7ceeb elementor-widget elementor-widget-text-editor\" data-id=\"69d7ceeb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Not everything qualifies. Assets excluded from the simplified depreciation rules cannot be claimed under the ATO instant asset write-off. These include certain intangible assets and assets used in specific R&amp;D activities.<\/p><p>Passenger vehicles also have a separate car limit; the full $20k instant asset write-off doesn&#8217;t automatically apply to all vehicles. However, vehicles not classified as passenger vehicles, such as utes with a payload capacity over one tonne, are not subject to this car limit.<\/p><p>If you&#8217;re unsure whether a specific asset qualifies, it&#8217;s worth checking with your accountant or bookkeeper before purchasing. You can also visit our <a href=\"https:\/\/befreeltd.com\/au\/services\/tax-outsourcing\/\">tax outsourcing services<\/a> page for guidance.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0f18dc9 elementor-widget elementor-widget-heading\" data-id=\"0f18dc9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Does the $20,000 Instant Asset Write-Off Work?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5cf602a elementor-widget elementor-widget-text-editor\" data-id=\"5cf602a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Here&#8217;s a straightforward example:<\/p><p>Sarah runs a small caf\u00e9 in Melbourne with an annual turnover of $800,000. In August 2025, she buys a new commercial coffee machine for $12,000 (excluding GST). She uses it in her business immediately.<\/p><p>Because the machine costs less than the $20,000 instant asset write-off limit and was installed ready for use within the 2025\u201326 financial year, Sarah can claim the full $12,000 as a deduction in her tax return for that year, reducing her taxable income by $12,000.<\/p><p>If the machine had cost $22,000, she wouldn&#8217;t have been able to use the small business instant asset write-off. Instead, the $22,000 would go into the small business pool to be depreciated over time.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7077907 elementor-widget elementor-widget-heading\" data-id=\"7077907\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Instant Asset Write-Off: Key Dates to Remember\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e724961 elementor-widget elementor-widget-html\" data-id=\"e724961\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t\t<!DOCTYPE html>\r\n<html lang=\"en\">\r\n<head>\r\n<meta charset=\"UTF-8\">\r\n<meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\">\r\n\r\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Noto+Sans&display=swap\" rel=\"stylesheet\">\r\n\r\n<style>\r\n  body {\r\n    font-family: 'Noto Sans', sans-serif;\r\n    font-size: 16px;\r\n    margin: 0;\r\n    padding: 16px;\r\n    background: #f9f9f9;\r\n  }\r\n\r\n  .table-container {\r\n    overflow-x: auto;\r\n    -webkit-overflow-scrolling: touch;\r\n  }\r\n\r\n  table {\r\n    border-collapse: collapse;\r\n    min-width: 600px;\r\n    width: 100%;\r\n    background: #fff;\r\n  }\r\n\r\n  th, td {\r\n    border: 1px solid #ddd;\r\n    padding: 12px;\r\n    text-align: left;\r\n  }\r\n\r\n  th {\r\n    background: #eaeaea;\r\n    font-weight: 600;\r\n  }\r\n\r\n  tr:nth-child(even) td {\r\n    background: #f5f5f5;\r\n  }\r\n<\/style>\r\n<\/head>\r\n\r\n<body>\r\n\r\n<div class=\"table-container\">\r\n  <table>\r\n    <thead>\r\n      <tr>\r\n        <th>Milestone<\/th>\r\n        <th>Date<\/th>\r\n      <\/tr>\r\n    <\/thead>\r\n    <tbody>\r\n      <tr>\r\n        <td>Assets must be first used or installed ready for use<\/td>\r\n        <td>By 30 June 2026<\/td>\r\n      <\/tr>\r\n      <tr>\r\n        <td>Current threshold<\/td>\r\n        <td>$20,000 per asset (excl. GST)<\/td>\r\n      <\/tr>\r\n      <tr>\r\n        <td>Eligible turnover<\/td>\r\n        <td>Under $10 million aggregated<\/td>\r\n      <\/tr>\r\n      <tr>\r\n        <td>Pool balances under $20,000<\/td>\r\n        <td>Can be written off at the end of 2025\u201326<\/td>\r\n      <\/tr>\r\n    <\/tbody>\r\n  <\/table>\r\n<\/div>\r\n\r\n<\/body>\r\n<\/html>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4927cc8 elementor-widget elementor-widget-heading\" data-id=\"4927cc8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How to Claim the Instant Asset Write-Off\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9afae1d elementor-widget elementor-widget-text-editor\" data-id=\"9afae1d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Claiming is straightforward:<\/p><ol><li><strong>Purchase the asset:<\/strong> ensure it costs less than $20,000 (excl. GST)<\/li><li><strong>Use it or install it ready for use<\/strong> before 30 June 2026<\/li><li><strong>Keep your records:<\/strong> invoices, receipts, and proof of business use<\/li><li><strong>Claim it in your tax return<\/strong> for the 2025\u201326 income year under simplified depreciation rules<\/li><li><strong>Only claim the business-use portion:<\/strong> if you use the asset partly for personal use, only the business percentage is deductible<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7c92f3c elementor-widget elementor-widget-text-editor\" data-id=\"7c92f3c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tStaying on top of your records throughout the year makes claiming much easier. If your books aren&#8217;t in order, you risk missing out or making errors in your return.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ea067ca elementor-widget elementor-widget-heading\" data-id=\"ea067ca\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Don't Let Poor Records Cost You This Deduction\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b016cee elementor-widget elementor-widget-text-editor\" data-id=\"b016cee\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The instant asset write-off Australia rules are clear, but the deduction is only as useful as the records behind it. If your invoices are missing, your accounts are messy, or your business-use percentages aren&#8217;t documented, the ATO can disallow your claim.<\/p><p>This is where professional bookkeeping makes a real difference. Accurate, up-to-date records mean you can claim every deduction you&#8217;re entitled to, without stress at tax time.<\/p><p>If managing your books feels like a burden, explore our tax and <a href=\"https:\/\/befreeltd.com\/au\/services\/bookkeeping-outsourcing\/\">bookkeeping outsourcing services<\/a> to see how we can help keep your finances ATO-ready year-round.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9559287 elementor-widget elementor-widget-heading\" data-id=\"9559287\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">FAQs\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ada7623 elementor-widget elementor-widget-n-accordion\" data-id=\"ada7623\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:300,&quot;sizes&quot;:[]},&quot;default_state&quot;:&quot;expanded&quot;,&quot;max_items_expended&quot;:&quot;one&quot;}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1820\" class=\"e-n-accordion-item\" open>\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"true\" aria-controls=\"e-n-accordion-item-1820\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> What is the instant asset write-off threshold for 2026? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1820\" class=\"elementor-element elementor-element-22a9894 e-con-full e-flex e-con e-child\" data-id=\"22a9894\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-f3e7751 elementor-widget elementor-widget-text-editor\" data-id=\"f3e7751\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tThe instant asset write-off threshold for the 2025\u201326 financial year is $20,000 per asset, excluding GST. Your business must have an aggregated annual turnover of less than $10 million to be eligible. This was confirmed as part of the instant asset write-off budget announcement on 4 April 2025 and is now law.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1821\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1821\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> What is the instant tax deduction for 2026?  <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1821\" class=\"elementor-element elementor-element-04fa6be e-con-full e-flex e-con e-child\" data-id=\"04fa6be\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4745bd9 elementor-widget elementor-widget-text-editor\" data-id=\"4745bd9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The instant tax deduction for 2026 refers to the $20,000 instant asset write-off, which allows eligible small businesses to immediately deduct the full cost of qualifying assets purchased and used before 30 June 2026, rather than depreciating them over multiple years. The <a href=\"https:\/\/www.ato.gov.au\/about-ato\/new-legislation\/in-detail\/businesses\/small-business-support-20000-dollar-instant-asset-write-off\">ATO instant asset write-off page<\/a> confirms this measure is now legislated.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1822\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1822\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> What is the most overlooked tax break in Australia?  <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1822\" class=\"elementor-element elementor-element-0c09e55 e-con-full e-flex e-con e-child\" data-id=\"0c09e55\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-75993e5 elementor-widget elementor-widget-text-editor\" data-id=\"75993e5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tThe small business instant asset write-off is widely considered one of the most underused tax concessions for Australian small businesses. Many SME owners are either unaware of it, miss the deadline, or lose the claim due to incomplete records.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1823\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"4\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1823\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> What is the asset threshold for 2026?  <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1823\" class=\"elementor-element elementor-element-f62e7ed e-con-full e-flex e-con e-child\" data-id=\"f62e7ed\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-128564e elementor-widget elementor-widget-text-editor\" data-id=\"128564e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tFor 2025\u201326, the asset threshold is $20,000 per asset (excluding GST), also referred to as the 20k instant asset write-off, for businesses with an aggregated turnover under $10 million. Assets at or above $20,000 must be placed into the small business depreciation pool instead.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1824\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"5\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1824\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> How does the $20,000 instant asset write-off work?  <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1824\" class=\"elementor-element elementor-element-135a998 e-con-full e-flex e-con e-child\" data-id=\"135a998\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-519fbcf elementor-widget elementor-widget-text-editor\" data-id=\"519fbcf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tIf your business has a turnover under $10 million and you purchase an eligible asset costing less than $20,000 (excl. GST), you can deduct the full cost in your tax return for the year the asset was first used or installed ready for use. The ATO instant asset write-off limit applies per asset, so multiple purchases can each be claimed individually.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-73e2258 elementor-widget elementor-widget-text-editor\" data-id=\"73e2258\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><em><strong>Disclaimer:<\/strong> This blog is for general informational purposes only and does not constitute tax or financial advice. Please consult a registered tax professional for advice specific to your business.<\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What is the instant asset write-off threshold for 2026?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The instant asset write-off threshold for the 2025\\u201326 financial year is $20,000 per asset, excluding GST. Your business must have an aggregated annual turnover of less than $10 million to be eligible. 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The ATO instant asset write-off limit applies per asset, so multiple purchases can each be claimed individually.\\n\\t\\t\\t\\t\\t\\t\\t\\t\\n\\t\\t\\t\\t\\n\\t\\t\\t\\t\\t\\t\\t\\t\\tDisclaimer: This blog is for general informational purposes only and does not constitute tax or financial advice. Please consult a registered tax professional for advice specific to your business.\"}}]}<\/script>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>If you run a small business in Australia, the instant asset write-off is one of the most useful tax breaks available to you right now. It is also one of the most underused. The good news? As part of the 2025 Federal Budget, the Australian Government extended the small business instant asset write-off, keeping the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16653,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-16651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Good News: Instant Asset Write-Off $20K Threshold 2025\u201326<\/title>\n<meta name=\"description\" content=\"Good news: the Australian Government has extended the $20,000 Instant Asset Write-Off until 30 June 2026. Learn how small businesses can benefit.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"shwetha\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Good News: Instant Asset Write-Off $20K Threshold 2025\u201326","description":"Good news: the Australian Government has extended the $20,000 Instant Asset Write-Off until 30 June 2026. Learn how small businesses can benefit.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"twitter_misc":{"Written by":"shwetha","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/befreeltd.com\/au\/resources\/blogs\/australian-small-businesses-instant-asset-write-off\/","url":"https:\/\/befreeltd.com\/au\/resources\/blogs\/australian-small-businesses-instant-asset-write-off\/","name":"Good News: Instant Asset Write-Off $20K Threshold 2025\u201326","isPartOf":{"@id":"https:\/\/befreeltd.com\/au\/#website"},"primaryImageOfPage":{"@id":"https:\/\/befreeltd.com\/au\/resources\/blogs\/australian-small-businesses-instant-asset-write-off\/#primaryimage"},"image":{"@id":"https:\/\/befreeltd.com\/au\/resources\/blogs\/australian-small-businesses-instant-asset-write-off\/#primaryimage"},"thumbnailUrl":"https:\/\/befreeltd.com\/au\/wp-content\/uploads\/Instant-Asset-Write-Off.webp","datePublished":"2026-04-28T04:10:47+00:00","dateModified":"2026-04-30T09:49:46+00:00","description":"Good news: the Australian Government has extended the $20,000 Instant Asset Write-Off until 30 June 2026. 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