Small business owners across Australia received welcome news in the most recent Federal Budget: the instant asset write-off scheme has been extended until 30 June 2025. With just over two weeks left until the deadline, now is the time to take action if you haven’t already made the most of this valuable tax incentive.
This extension offers a final window to upgrade essential equipment or invest in your operations while benefiting from immediate tax deductions.
What Is the Instant Asset Write-Off?
The instant asset write-off allows eligible businesses to claim a full deduction for the cost of certain assets in the financial year they’re first used or installed ready for use. Instead of depreciating an asset over several years, you can reduce your taxable income in the same year of purchase.
Eligible businesses must have an aggregated turnover of less than $10 million, and each individual asset must cost less than $20,000 (excluding GST).
Why Act Now?
With the 30 June 2025 deadline approaching fast, businesses have a short but critical window to:
- Finalise equipment purchases before the end of the financial year
- Take delivery and have assets installed and operational before the cut-off
- Maximise tax deductions for the current financial year
Even if you’re only now getting started, it’s still possible to benefit, provided you move quickly.
Eligible Assets Under the Scheme
You can claim the instant asset write-off on a wide range of new and second-hand business assets under $20,000, including:
- Work vehicles, tools, and machinery
- Office equipment like printers, desks, and chairs
- POS systems, EFTPOS terminals, and computer hardware
- Trade-specific gear, such as refrigeration or air conditioning units
What Doesn’t Qualify?
Certain items fall outside the scope of the scheme, including:
- Leased assets (leased more than 50% of the time)
- Software pooled for development purposes
- Capital works (such as building renovations)
- Research and development-specific assets
- Plants and grapevines used in horticulture
If you’re unsure, it’s best to check with your accountant or financial adviser to confirm asset eligibility.
Even with the tax savings, many small businesses need support to fund asset purchases before the deadline. That’s where our team at Peel Finance Brokers can help. Our team can guide you through the finance process quickly and efficiently, so you can secure the assets your business needs before the deadline.
Based in Mandurah and supporting businesses throughout Western Australia, we’re just a call away. Don’t leave it too late. Contact us to discuss your finance options today.
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Terry Boag is the founder and CEO of Peel Finance Brokers and has been providing professional and loyal service to the Mandurah and southwest area for 25 years. With a long history of financial experience, Terry is reliable and dedicated to his clients, always ensuring the highest customer service and delivering strong lender relationships.