$20,000 instant asset write off: What small businesses should know before EOFY 

The Federal Budget has delivered good news for small businesses, with the Government announcing that the $20,000 instant asset write off (IAWO) will be made permanent ^{* ^}. 

If your business is thinking about investing in equipment, tools, vehicles or tech, having those assets in place before EOFY could help reduce your taxable income for the year. 

Here’s what you need to know and how a Tyro loan ^§ can fund those purchases – fast.

What is the $20,000 instant asset write off?

The $20,000 instant asset write off lets eligible small businesses claim an immediate tax deduction on depreciating assets, instead of claiming the deduction over several years. 

In the latest Federal Budget, the Government announced the $20,000 instant asset write off would be made permanent, giving small businesses more certainty when planning future asset purchases. 

Businesses making less than $10 million may be able to deduct the full cost of eligible assets under $20,000, if they are first used or installed ready for use by 30 June 2026. 

The $20,000 limit applies on a per asset basis. This means small businesses may be able to instantly write off multiple assets, provided each asset costs less than $20,000. 

What this means for small businesses

The instant asset write off may help small businesses invest in the things they need while also reducing taxable income. 

Depending on the business, this could support purchases such as: 

• replacing ageing equipment  

• upgrading point-of-sale, kitchen or workshop tools  

• investing in technology or business software  

• improving fit-outs or operational capacity  

It is important to remember that the write-off does not make the asset free. The business still needs to pay for the purchase upfront. The benefit comes through the potential tax deduction. 

Why EOFY timing matters

Timing is important. To claim the deduction for this financial year, the asset generally needs to be first used, or installed ready for use, by 30 June 2026. 

That often means a significant upfront cost at a time when cash flow may already be tight. 

How a Tyro loan can help

While the instant asset write off may reduce taxable income, businesses still need to fund the purchase upfront before 30 June 2026. That is where access to a business loan may help. 

Tyro offers flexible business loans ^§ that may help eligible businesses access funding fast. This could help businesses move quickly when they need to replace or upgrade key assets, while still keeping day-to-day cash flow on track. 

With Tyro’s flexible repayments ^§, businesses can also nominate a percentage of daily takings to repay their loan, so payments rise and fall with business sales.