Australia’s small businesses are starting the new year with welcome certainty as the Instant Asset Write-Off has been locked in early for 2025–26 — bringing clarity, savings, and planning power to your 2026 strategy.
The Federal Government has officially passed the Instant Asset Write-Off for the 2025–26 financial year, allowing eligible businesses to immediately deduct the full cost of certain assets under $20,000.
Click here to read the official details via the ATO
This early legislative approval marks an important shift from previous years, where extensions were confirmed only weeks before the financial year ended. For business owners, this brings clarity, confidence, and improved cash-flow planning for 2026.
What has been approved for 2025–26?
The newly passed measure allows small businesses with turnover under $10 million to instantly deduct the full cost of eligible depreciating assets valued under $20,000 for assets first used or installed, ready for use between 1 July 2025 and 30 June 2026.
This threshold applies per asset, meaning businesses can claim multiple eligible purchases across the financial year.
The Government estimates that over 4.1 million small businesses will benefit from this tax incentive.
Why this matters for business owners
The instant asset write-off gives small businesses more control over planning and budgeting. Instead of waiting until June for legislative updates, businesses can now:
✔️ Confidently plan their equipment or vehicle upgrades
✔️ Spread purchases across the year
✔️ Improve cash flow with immediate deductions
✔️ Make long-term business decisions with certainty
Eligible assets may include:
- Work vehicles
- Tools and machinery
- IT equipment and technology upgrades
- Office and shop-front improvements
- Commercial kitchen and hospitality equipment
- Other depreciating assets under $20,000
Industry response
While industry groups welcomed the early passage of the legislation, many continue to call for it to become permanent, avoiding year-by-year uncertainty.
A stable, long-term write-off would help small businesses forecast expenses and make strategic investment decisions with confidence.
Start 2026 with confidence
The instant asset write-off provides a valuable opportunity to invest in the equipment you need to grow. Acting early ensures you can take full advantage of the incentive before EOFY 2026.
How BTE finance can support your 2026 investments
At BTE Finance, we work closely with small businesses across Australia to support growth and cash-flow efficiency. We can help structure the right finance solution for your business, including:
- Chattel mortgages
- Equipment and machinery finance
- Vehicle finance
- Low-doc options for small businesses
- Flexible terms matched to your cash flow
Whether you’re planning to upgrade or expand, our team can guide you through the finance options that align with your tax planning and business goals.
📌 Need help or want to talk through your situation?
📌If you have any concerns or want to discuss your situation, reach out to us today on 0401 480 828.
DISCLAIMER: The above content is to provide general information and does not constitute financial, legal or other advice. This means that duties and requirements imposed on people who give financial advice do not apply to this content. For advice contact your accountant or legal advisor.