The 2026 Federal Budget delivered some welcome news for Australian small business owners — a $20,000 instant asset write-off has been extended and is now available for eligible businesses with an annual turnover under $10 million. If you are a tradie, SME operator, or self-employed professional, this is one of the most powerful tax tools available right now.
What Is the Instant Asset Write-Off?
The instant asset write-off allows small businesses to immediately deduct the full cost of eligible assets in the year they are purchased and first used — rather than spreading depreciation over several years. For the 2025–26 financial year, the threshold is $20,000 per asset. You can claim multiple assets as long as each costs under $20,000.
What Assets Qualify?
To be eligible, the asset must be purchased and first used between 1 July 2025 and 30 June 2026, used for carrying on a business, and cost under $20,000 (GST-exclusive if registered). Commonly claimed assets include utes, commercial vehicles, tools, machinery, computers, cafe equipment, and solar systems.
How Asset Finance Makes This More Powerful
You do not need to pay cash upfront to claim the write-off. If you finance through a chattel mortgage or commercial hire purchase, you can still claim the full instant write-off in year one. You preserve your cash flow, get the full deduction immediately, and spread repayments over 12 to 60 months while the asset generates income from day one.
Real-World Example
A plumber buying an $18,500 work ute via chattel mortgage can deduct the full amount in their 2025–26 return. At a 30% tax rate that is a $5,550 saving. Monthly repayments around $380. The business keeps its cash and cuts its tax bill significantly.
Act Before 30 June 2026
The asset must be purchased AND first used before 30 June 2026. Do not wait until late June — lenders can take 3 to 10 business days to settle. Start the process now.
How Co-Pilot Finance Can Help
At Co-Pilot Finance and Insurance, we specialise in fast, flexible asset finance for Australian business owners. We work with lenders across Australia and can often settle within 24 to 48 hours. Apply for Asset Finance Today.
Frequently Asked Questions
Can I claim on a vehicle used partly for personal use?
Yes, but only the business-use portion. 80% business use means 80% of the cost is claimable.
Do I need to be GST-registered?
If registered for GST, the threshold is GST-exclusive. If not, it includes GST.
What if the asset costs more than $20,000?
Assets over $20,000 go into your small business depreciation pool. Speak to your accountant for the right structure.
Disclaimer: General information only. Not financial or tax advice. Consult your accountant before making decisions.