Why the $20,000 Instant Asset Write-Off Matters Right Now

If you're a tradie, builder, sparkie, mechanic or run any small business under the $10 million turnover threshold, the $20,000 instant asset write-off is one of the most useful tax measures available to you in the 2025–26 financial year. It lets you immediately deduct the business portion of eligible assets costing less than $20,000, instead of depreciating them slowly over years. The catch: this extension is only legislated until 30 June 2026, and from 1 July 2026 the threshold is scheduled to drop back to just $1,000 unless the government extends it again. With only weeks to go, this is the window to plan your purchases properly.

What Is the Instant Asset Write-Off?

The instant asset write-off (IAWO) lets eligible small businesses claim an immediate tax deduction for the full business-use portion of an asset, in the same income year the asset is first used o

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