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Big news for small businesses. The Australian Government has confirmed it will permanently extend the $20,000 instant asset write-off from 1 July 2026.
The tax measure has been in place in some form or another since 2015, but it's always come with an expiry date attached. Not anymore. With the write-off now a permanent fixture, you can plan equipment and asset purchases with real confidence, not just a six-week window.
That said, EOFY is still your first and best opportunity to put it to work.
The $20,000 instant asset write-off is now permanent. Buy qualifying gear before 30 June and claim the full cost as a tax deduction this financial year. With Reece's Tool Promo dropping on June 1, get your Laddr Line of Credit sorted now so you're ready to move when it lands.
The instant asset write-off allows small businesses to immediately claim a tax deduction for eligible purchases up to the value of $20,000, instead of claiming depreciation on the asset over a number of years.
In plain terms: buy a qualifying asset, use it in your business before 30 June, and deduct the full cost from your taxable income this financial year.
Eligible small businesses with aggregated turnover under $10 million can immediately deduct the cost of assets costing less than $20,000. Businesses can claim multiple purchases of both new and second-hand items, with the $20,000 threshold applying per asset.
Most everyday business assets are eligible, provided they're used for business purposes and cost less than the threshold. For tradies and trade business owners, that includes:
Capital works, including buildings and structural improvements, are excluded from the write-off. If you're not sure whether a specific asset qualifies, your accountant can confirm.
The permanence of the write-off means you're not racing a deadline. But assets must be installed and ready for use by 30 June 2026 to claim the deduction in this financial year. If you have made a tax profit in FY26, and want to reduce the amount you will have to pay the ATO, then the clock is still ticking.
If you buy your tools and equipment through Reece, there's an added reason to get moving. Reece's Annual Tool Time Promotion is launching in June, right in the EOFY window. That's a strong combination: promo pricing on gear you need, plus a full tax deduction on purchases under $20,000.
The catch is timing. If you wait until the promo launches to sort your finance, you're cutting it fine. Apply for a Laddr Line of Credit via Reece maX now, up to $250,000, and you could have funds ready to move the moment the promo drops. No pause. No scramble. No risk of missing the 30 June deadline.
You don't need to pay outright to take advantage of the write-off. Financing an asset using a Laddr Line of Credit qualifies. What matters is that it's purchased and ready to use before 30 June.
Laddr offers fast, flexible financing for Reece trade customers, using your Reece trading history to save time and avoid lengthy bank processes. Whether you're picking up a second vehicle, upgrading your kit, or making a long-overdue investment in your business, EOFY is the right time to move.
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