Fuel Your Growth with Immediate Tax Relief
For small business owners in Maroubra and across Australia, the Instant Asset Write-Off remains one of the most powerful tools for managing cash flow. Instead of claiming depreciation on a new asset over several years, you can deduct the full cost in a single tax return.
The Australian Government has officially extended the $20,000 threshold until 30 June 2026.
How the $20,000 Threshold Works
If your business is eligible, you can immediately deduct the full cost of any asset that costs less than $20,000.
- Per-Asset Limit: The $20,000 limit applies to each asset. You can buy multiple assets (e.g., three $15,000 machines) and write off the full $45,000 in one year.
- New or Second-Hand: You can claim the write-off for both brand-new and quality second-hand equipment.
- GST Considerations:
- If registered for GST: The threshold is $20,000 excluding GST.
- If NOT registered for GST: The threshold is $20,000, including GST.
2. Are You Eligible?
To take advantage of this incentive for the 2025–26 financial year, your business must:
- Have an aggregated turnover of less than $10 million.
- Use the “Simplified Depreciation Rules”.
- Use or install the asset by 30 June 2026. (Simply paying for it or ordering it is not enough; it must be “ready for use” in your business by the deadline).
3. What Can You Claim?
Most “tangible” assets used to run your business qualify. Common examples for SRI Finance clients include:
- Vehicles: Work utes, delivery vans, and company cars (Note: specific car limits may apply to luxury vehicles).
- Trade Tools: Drills, saws, excavators, and heavy machinery.
- Office & Tech: Laptops, servers, printers, and office furniture.
- Medical Equipment: Specialist chairs, diagnostic tools, and dental gear.
- Hospitality: Commercial ovens, coffee machines, and cool rooms.
4. What Happens if an Asset Costs $20,000 or More?
If you purchase an asset for your business that exceeds the $20,000 threshold (such as a $50,000 truck), it doesn’t qualify for the instant write-off. Instead:
- It is placed into your Small Business General Pool.
- You claim a 15% deduction in the first year.
- You claim a 30% deduction each year thereafter.
Pro Tip: If your total pool balance falls below $20,000 at the end of the 2025–26 financial year, you can write off the entire remaining balance at once!
5. Strategic Benefits for Your Cash Flow
- Immediate Tax Savings: Reduce your taxable income for the current year, keeping more cash in your business.
- Modernise Faster: Don’t wait 5 years for a tax benefit to upgrade your equipment.
- Simpler Bookkeeping: Eliminate the need to track long-term depreciation schedules for smaller assets.
Disclaimer: This guide provides general information only. Tax laws are complex and subject to change. We strongly recommend consulting with your accountant or tax professional at SRI Finance before making significant purchase decisions.
Ready to Upgrade?
Don’t let the $20,000 cap limit your ambition. At SRI Finance, we specialise in asset finance and chattel mortgages that help you acquire the equipment you need today while maximising your tax position.
