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The current $20,000 instant asset write-off threshold is scheduled to end on 30 June 2026.
From 1 July 2026, the threshold is expected to reduce significantly, potentially returning to $1,000 unless legislation changes.
This creates a planning opportunity for businesses considering equipment purchases.
The instant asset write-off allows eligible businesses to immediately deduct the cost of assets under the threshold rather than depreciating them over time.
This can assist with:
• Reducing taxable income
• Improving after-tax cashflow
• Supporting reinvestment
The key factor is timing.
Businesses considering purchases should review:
Assets generally must be installed and ready for use before 30 June to qualify.
Common issues include:
Tax outcomes should support business decisions, not drive them.
Before purchasing, consider:
The instant asset write-off can be useful, but it should form part of broader planning rather than last-minute spending.
Well planned purchases usually deliver better outcomes than rushed decisions.
A deduction only reduces tax — it does not make a purchase free.
Good decisions start with business need, not tax pressure.
If you are considering equipment purchases or want to understand your available deductions before year end, we can assist with planning.
This article is published by R J Sanderson and Associates Pty Ltd ABN 71 060 299 783. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.