Instant Asset Write-Off & EOFY: What Gold Coast Businesses Should Know Before June 30

For years, the instant asset write-off came with a built-in deadline mentality. Every June, small business owners raced to order, deliver and install equipment before the financial year closed, worried the threshold would shrink back to $1,000 if Parliament didn't act. That pressure has now changed.

On 19 August 2026, Parliament passed the Treasury Laws Amendment (Tax Reform No. 2) Bill 2026, permanently locking in the $20,000 instant asset write-off for small businesses with an aggregated turnover under $10 million, effective from 1 July 2026. There's no longer an annual cliff edge to plan around. But that doesn't mean timing no longer matters, it means the timing conversation has shifted from "beat the deadline" to "plan the purchase properly."

Here's what that shift actually means for Gold Coast trades, transport operators, builders and other small businesses thinking about equipment before the next EOFY.

What actually changed

Previously, the $20,000 threshold was extended year by year, often only confirmed weeks before it was due to lapse. That created genuine pressure for business owners trying to plan capital purchases in advance.

Under the newly passed legislation, small businesses with aggregated turnover under $10 million can immediately deduct the business-use portion of eligible depreciating assets costing less than $20,000, for assets first used or installed ready for use from 1 July 2026 onward. The threshold applies per asset, not per invoice, so multiple purchases can each qualify individually. Assets costing $20,000 or more still go into the small business simplified depreciation pool, where they depreciate at 15% in the first year and 30% each year after.

The five-year lock-out rule, which normally stops a business re-entering simplified depreciation after opting out, also remains suspended until 30 June 2027.

Why timing still matters, even without a deadline

Permanence removes the panic, but it doesn't remove the mechanics of how the deduction is claimed. Three timing rules still decide whether a purchase lands in the year you intend it to.

First use or installation is what counts, not the order date. An asset only qualifies in the income year it's first used or installed ready for use for a taxable purpose. Paying a deposit or placing an order in June does nothing if the equipment isn't operating until the following month. If you want a purchase to count for the financial year it's bought in, delivery and commissioning both need to happen inside that year.

The threshold is per asset, not per purchase. A single invoice covering several pieces of equipment can still qualify item by item, as long as each individual asset costs less than $20,000. This is worth checking carefully with your accountant before assuming a bundled purchase falls outside the threshold.

GST treatment changes the number that matters. If you're registered for GST and can claim a full credit, the cost used for the write-off test is GST-exclusive. If you're not registered, it's GST-inclusive. A $21,500 asset can sit on either side of the $20,000 line depending on your registration status.

What permanence means for how you plan

The real opportunity in this change isn't a bigger threshold, it's the removal of the artificial June deadline. Instead of compressing a year's worth of equipment decisions into the last few weeks of the financial year, Gold Coast businesses can now:

• Time purchases around operational need and supplier pricing rather than a legislative cut-off
• Spread finance applications and asset delivery across the year to avoid EOFY supply and lending bottlenecks
• Still choose to bring a purchase forward into the current year if there's a genuine cash flow or tax benefit in doing so

That last point is where finance timing and tax timing intersect. Even with the deadline gone, there's often still a reason to complete a purchase before 30 June: bringing a deduction forward by twelve months can meaningfully improve cash flow in a strong-earning year. The difference now is that decision can be made on its own merits, not under duress.

Where finance fits into the timing decision

Equipment finance timelines don't always match up neatly with EOFY expectations. Lender approval, supplier lead times and installation can add up to weeks, which is exactly why so many businesses used to miss out on claiming a deduction in the year they intended.

If you're planning to bring an asset purchase forward before 30 June, the practical timing sequence matters as much as the tax rule:

1. Confirm eligibility and the asset's likely cost against the $20,000 threshold with your accountant
2. Get finance pre-approved early, rather than waiting until the last fortnight of June
3. Lock in supplier delivery dates that leave a buffer before the deadline
4. Keep invoices, delivery dockets and installation records as evidence of the first-use date

This is where working with a broker who understands equipment finance timelines helps. At Millard Financial, we work with Gold Coast business owners across equipment finance, heavy equipment finance, truck and commercial vehicle finance, manufacturing machine finance and agricultural equipment finance to get approvals moving quickly, so a finance delay doesn't push an asset outside the income year it's meant to be claimed in.

For businesses juggling more than one purchase, or a mix of vehicles, machinery and fit-out, our asset finance and complex business finance solutions are built to move at the pace your purchase timeline needs, with access to Australia's top-tier lenders through a single point of contact.

The takeaway for Gold Coast businesses

The instant asset write-off is no longer a once-a-year scramble. With the $20,000 threshold now permanent from 1 July 2026, the pressure to buy before June 30 out of fear the scheme will disappear is gone. What remains is the same as it's always been: buy equipment when your business genuinely needs it, get the installation and finance timing right, and let your accountant confirm how the deduction applies to your specific purchase and financial year.

If equipment finance is part of that plan, whether it's before this June 30 or spread across the year ahead, get in touch with the Millard Financial team to talk through timing, lender options and turnaround.

This article is general information only and doesn't consider your individual circumstances. It isn't tax or financial advice. Speak with a registered tax agent or accountant about how the instant asset write-off applies to your business before making a purchase decision.

Further reading

• Instant asset write-off for eligible businesses, Australian Taxation Office
• Instant Asset Write-Off, business.gov.au

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