EOFY 2025: Last Chance to Use the $20K Instant Asset Write-Off
Last updated: 30 March 2025
The $20,000 Instant Asset Write-Off has been one of the most valuable tax deductions available to small businesses in Australia — but it’s ending soon.
If you’ve been thinking about upgrading your equipment, replacing a vehicle, or investing in tools that help your business grow, now is the time to act.
Here’s everything you need to know before the deadline hits.
What Is the Instant Asset Write-Off?
The Instant Asset Write-Off (IAWO) allows eligible small businesses to claim an immediate tax deduction for the full cost of eligible assets, up to $20,000 (excluding GST), in the same financial year the asset is first used or installed.
This can significantly reduce your taxable income, boost your cash flow at tax time, and take the pressure off longer depreciation schedules.
It’s been a practical tool for many business owners looking to invest in their operations without being penalised at tax time.
What’s Changing?
The Federal Budget 2025 confirmed that the Instant Asset Write-Off will end on 30 June 2025.
Despite calls to make the $20,000 threshold permanent, the government has opted not to extend or expand the scheme beyond this date. That means:
No carryover past 1 July 2025
No increase in the threshold
No future replacement (as of the current budget announcement)
So, if you’re planning any end-of-financial-year purchases, they must be installed and ready for use before the deadline to claim the full write-off.
Who Still Qualifies?
To take advantage of the IAWO before it ends, your business must:
Have an aggregated turnover under $10 million
Purchase an eligible depreciating asset under $20,000 (ex GST)
Use or install the asset between 1 July 2023 and 30 June 2025
It’s important to check install dates carefully — if you purchase before the deadline but don’t have the asset ready to use, you may not qualify.
What Assets Are Eligible?
There’s a wide range of business-related purchases that can qualify under the IAWO. These include:
Vehicles: vans, utes, trucks (note: passenger vehicles are capped)
Tools & Equipment: welding gear, kitchen appliances, commercial ovens, tractors
Technology: POS systems, EFTPOS terminals, laptops, desktops, printers
Office Fitouts: desks, chairs, storage units, air conditioning, security systems
Machinery: construction equipment, food processing gear, cleaning tools
If the asset is under the $20K threshold and supports business operations, it’s likely to be eligible.
What If the Asset Costs More Than $20K?
Assets over the $20,000 limit can’t be written off instantly but can be added to the small business depreciation pool — where you’ll claim 15% in the first year and 30% each year after.
While it’s not as immediate, it’s still a useful way to reduce tax liability over time.
How Business Finance Can Help You Benefit Without Draining Cash
Not every business has spare cash lying around to make a last-minute purchase — especially during EOFY when expenses stack up fast.
That’s where equipment finance or a simple business loan can help.
Here’s why:
You can secure the asset now — without dipping into savings
Many lenders offer no financials required up to $75K
You can still claim the Instant Asset Write-Off — even if the asset was financed
You may be able to claim interest payments on the loan too*
Approvals can be as fast as 24–48 hours
The right finance can make this deduction more accessible — without affecting day-to-day operations or stressing your cash reserves.
Why You Should Act Early
With the deadline approaching, many suppliers and lenders will be under pressure as EOFY gets closer. Delays in delivery or installation could mean missing out altogether.
By acting now, you’ll:
Lock in supplier availability
Avoid last-minute stress
Give yourself time to compare finance options
Maximise the tax benefit before it’s too late
At Casey Asset Finance, we help business owners access equipment and funding quickly — without all the red tape.
Legal Disclaimer
This blog is provided for general information purposes only and should not be taken as tax or financial advice. Always speak with your accountant or a registered tax agent to determine eligibility and suitability for your unique circumstances. The Instant Asset Write-Off is subject to change based on Government policy and may be updated at any time.
Let’s Help You Take Advantage of the IAWO Before It Ends
Whether you know exactly what you need — or just want to explore your finance options — we’re here to help.
Tap the Apply Now button at the top of the page to see what you qualify for — it takes less than 2 minutes and won’t affect your credit score.
If you have any questions at all, please feel free to reach out.
Kind regards,
