Claim the $20K Instant Tax Write Off Before 30 June 2025

For small business owners in Australia, there's an intelligent tax deduction opportunity that you definitely shouldn't overlook. The ATO’s $20,000 Instant Asset Write-Off is now extended until 30 June 2025. This allows businesses to deduct the full cost of eligible assets right away. This helps improve cash flow and supports better investments in equipment and technology.

If you work in restoration, construction, cleaning, or trades, this tax incentive can help you. It allows you to upgrade your tools, invest in equipment, and grow your business. You can do all this without stretching your budget over many years.

What is the $20,000 Instant Asset Write-Off?

This program allows small businesses with total earnings under $10 million to instantly claim the entire expense of qualifying depreciating assets that:

• Have a price tag below $20,000 (excluding GST) and
• Are either first utilised or set up for use between 1 July 2024 and 30 June 2025.

Bonus:

This is a per asset threshold, meaning you can claim multiple assets—each under $20,000—as separate deductions.

Why Immediate Deductions Matter

Unlike standard depreciation (where deductions are spread over years), the instant asset write-off puts money back in your business this financial year.

Key benefits:

• Improved cash flow – Reduce your taxable income now, not later
• Faster ROI – See the return on your investment sooner
• Operational upgrades – Invest in better, newer tools and equipment
• Simplified depreciation rules – No need to track long-term depreciation for eligible assets

What Assets Qualify?

Eligible assets must be depreciable under tax law and used for business purposes.

If you have written off an asset before and now have new costs for it, you may claim these expenses. This is called the “second element of cost.” You can claim these new costs if they are under $20,000 and meet the time requirements.

Assets exceeding $20,000 remain eligible for depreciation via the simplified depreciation pool, with a 15% rate in the first year and 30% in following years.

Smart Planning: How to Make the Most of It

Before 30 June 2025, consider how your business could benefit from strategic investments:

• Assess equipment needs – Are your machines aging? Is there new tech that could boost productivity?
• Spread your purchases – Multiple assets under $20k = multiple write-offs.
• Check delivery and installation timelines – Assets must be ready for use by the deadline.
• Work with your accountant – Get tailored advice to make sure your purchases qualify.

Don’t Wait Until EOFY

With this offer now official and stock running low at the end of the financial year, it's time to plan ahead. Whether you’re replacing outdated gear or scaling operations, this tax break offers a great opportunity to invest wisely.

Want to Know What Equipment Qualifies?

We’re here to help. Talk to our team about your goals. We can help you choose products under $20,000. These products qualify for the write-off and fit your needs in restoration, cleaning, and construction.

Contact us now to explore your options or browse our range of eligible tools and equipment online.