Every June I have the same conversation with business owners who’ve left it too late.
They’ve heard about the instant asset write-off. They know there’s a June 30 deadline. They’ve been meaning to sort out a new ute, a piece of machinery or some commercial equipment. Now it’s the third week of June and they’re calling me in a panic.
Sometimes we make it work. Sometimes we don’t. And the difference between those two outcomes often comes down to one thing: how early they called.
What is the instant asset write-off?
The instant asset write-off is a Federal Government tax incentive that allows eligible businesses to claim an immediate deduction for the full cost of qualifying assets in the same income year the asset is first used or installed ready for use.
Instead of depreciating the asset’s cost over several years, you claim it all at once, which can significantly reduce your taxable income for that financial year.
Eligibility criteria are set by the Federal Government. The current threshold is $20,000, with the May 2026 federal budget announcing this will be made permanent from 1 July 2026, subject to legislation passing. The turnover limit for qualifying businesses is currently under $10 million. Before making any purchasing decisions based on this incentive, always confirm the current rules with your accountant or the ATO.
Why June 30 is the hard deadline
The instant asset write-off applies to assets purchased and either in use or installed ready for use before June 30 of the relevant financial year.
That’s not a soft guideline. It’s a hard cut-off. An asset ordered on June 28 but not delivered until July 3 doesn’t qualify for the current year. It falls into the next financial year entirely.
To be clear, this isn’t about the write-off scheme disappearing after June 30. It continues into the next financial year. June 30 is the cut-off for claiming the deduction in your 2025-26 return. If you want to reduce this year’s tax bill, the asset needs to be purchased and installed before then.
This is why leaving things to the last week is so risky.
What goes wrong when you leave it too late
Finance takes time. Even with fast approvals, and I can often get finance approved in 24 to 48 hours, there’s still paperwork, lender processing, and sometimes back-and-forth on documentation. If you come to me on June 25, we’re working against the clock.
Lenders get backed up. In the final two weeks of June, every broker and every business owner in Australia is trying to settle deals. Lender queues blow out. What normally takes 24 hours might take four days.
Suppliers run out of stock or have their own delays. The asset still needs to be delivered and installed ready for use before June 30. A supplier who can normally deliver in five days might be juggling a dozen end of year orders. Stock runs low. Delivery schedules shift.
Mistakes happen under pressure. When everyone is rushing, errors creep into paperwork. Missing documents, incorrect details and incomplete applications cause delays that could easily have been avoided.
The right way to approach EOFY asset purchasing
The businesses that make the most of this opportunity are the ones that plan ahead. Here’s a simple approach.
Start the conversation now. If you’ve been thinking about a vehicle, machinery or equipment purchase that you’d like to use as a tax deduction this financial year, pick up the phone today. Even if you’re not 100% certain you’ll proceed, understanding your options costs nothing.
Get your finance pre-approved. Once you have finance approved in principle, you’re in a position to move quickly the moment you find the right asset. You’re not starting from scratch when time is short.
Coordinate with your accountant. Your accountant can confirm whether the asset qualifies, what your eligible deduction looks like, and whether it makes sense for your specific tax position this year. Finance and tax advice work together here.
Build in buffer time. Aim to have everything settled by June 20, not June 30. That gives you a ten-day buffer if anything takes longer than expected.
What can be financed?
A broad range of business assets are eligible for finance and potentially for the instant asset write-off. These include:
- Work vehicles (cars, utes, vans, trucks, trailers)
- Earthmoving and construction equipment
- Commercial machinery
- Manufacturing and food processing equipment
- Engineering and fabrication equipment
- IT equipment
- Specialised industry equipment
If the asset has a serial number and is used for business purposes, there’s a good chance it can be financed and may be eligible for the write-off. Your accountant can confirm eligibility for the tax deduction; I can help arrange the finance.
A quick note on finance and the write-off
You don’t need to buy an asset outright to claim the instant asset write-off. In most cases, assets purchased using finance, including chattel mortgages and some other loan structures, are eligible for the deduction.
The structure of your finance matters, though. Certain loan types allow you to claim the full asset cost as an immediate deduction (chattel mortgage is the most common example), while others have different tax treatment. This is another reason why speaking with both your accountant and your finance broker before you proceed is important.
Don’t leave it to the last week
The instant asset write-off is a genuine opportunity to invest in your business while reducing your tax bill. But it only works if the timing is right.
If you’ve been sitting on a purchasing decision, now is the time to act. Call me this week, let’s work out what finance looks like, and I’ll coordinate with you to make sure everything is settled well before June 30.
