Every financial year, the same thing happens in accounting firms across the country:
Equipment purchases that could have been made in September get delayed until the last two weeks of June, all in the name of “getting the write-off.” It’s a pattern worth breaking, and this year there’s a good reason to start.
What has changed
The $20,000 instant asset write-off, which lets eligible businesses claim an immediate deduction for eligible assets costing less than $20,000, rather than depreciating them over several years, has previously been a measure that gets re-announced (and re-legislated) year by year. It’s now become a permanent feature of the tax system from 1 July 2026.
Why the June rush is a problem
When equipment decisions get compressed into the final weeks of the financial year, two things tend to go wrong. First, purchases get made on a deadline rather than on genuine business need, which is how businesses end up with the wrong asset, or more capacity than they actually needed.
Second, suppliers know the pattern too, and June pricing and availability aren’t always the best time to buy.
A better approach
- Planning equipment purchases needs across the financial year, based on when the business will actually use the asset
- Treat the instant asset write-off as a tax outcome that follows a sensible purchase decision, not the reason for the purchase
- Purchasing assets earlier in the year ensures that you are ready to use your new asset before 30 June – critical to be eligible to claim the deduction
The takeaway
If equipment is on your radar for the year ahead, there’s no need to hold off until June. Reach out to Accounting Services Australia if you’d like
- A hand thinking through timing
- Including what happens if the permanence proposal doesn’t pass
- Any planning decisions you need an independent eye over
- Get in touch today…
Author of the Post:
Justin Maddock
Justin Maddock is a Chartered Accountant and CPA with more than 20 years’ experience in public practice.
Accounting Services Australia
