How small businesses can use the tax benefits to upgrade their payment tech

We are fast approaching the end of the financial year and small businesses are feeling the pinch of inflation from rising operational costs to increased energy bills. Consumers are changing their behaviour and resisting price increases is affecting sales and profit margins. Labour shortages and rapid wage growth are making life tough for employers. Despite the financial pressures, many small businesses are being proactive and technology investment is top of mind.

The 2024-25 Federal Budget delivered targeted support to help small businesses manage the ongoing cost pressures. One of the key measures was the extension of the $20,000 instant asset write-off, aimed at helping businesses invest in the tools they need to grow. For small businesses looking to upgrade, particularly around payment systems, this tax incentive is timely. Payments are a critical part of any business, and customers want a seamless transaction experience. If your EFTPOS system is old, slow, or does not meet customer expectations, now is the perfect time to make the change, as the deadline – 30^th of June 2025 is approaching.

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

The Australian government’s instant asset write-off tax benefit allows eligible small businesses to claim an immediate tax deduction for assets purchased under $20,000.

To be eligible for this benefit, make sure you meet the following criteria:

1. The asset needs to be acquired and installed by 30th June 2025 and must be operational by that date.
2. The business must have an annual turnover of less than $10 million.
3. The asset value must not exceed $20,000 per item.

While an individual EFTPOS terminal may only use a small part of this allowance, upgrading to a full POS system can maximise your tax benefits and your business capabilities. Upgrading your payment infrastructure isn’t just about compliance – it’s about efficiency, security and cost savings.

How Tyro integrated POS can maximise your business capabilities:

At Tyro, innovation sits at the heart of everything we do and pioneers in delivering purpose-built solutions and first-to-market products. Tyro is also the first technology company to receive an Australian specialist credit card institution license in 2005. Since then, it’s spent over 20 years building deep roots in the payments space, growing its tech through partnerships and constantly evolving to meet the needs of Aussie businesses.

1. 450+ Point of Sale Partners
   Tyro supports over 73,000+ businesses across Australia with in-store, online and on-the-go payment solutions. To cater to such a large network of audience, Tyro has partnered with 450+ POS Partners, making payments seamless for hospitality venues, retailers, service providers and health professionals.
2. Reduce errors and potentially save money
   Tyro EFTPOS integration with point-of-sale (POS) systems does not incur any extra fees and avoids costly keying errors, eliminating double entry and reconciliation headaches. However, Tyro EFTPOS terminals have various pricing structures in place that suit the preferences of the business owners.
3. Tyro Connect  
   Tyro Connect is our growing integration hub that links POS systems to the best third-party apps in hospitality and retail – from reservations and rosters to marketing and delivery. Tyro Connect provides POS systems that option to connect once to the Tyro Connect APIs and benefit from Tyro’s App Marketplace without any additional code. Tyro also offers a connection to businesses that run their cloud-based infrastructure.
4. Least-cost routing via Tyro’s Tap & Save.
   Tyro offers least-cost routing functionality to businesses via its Tap & Save ¹ technology and was the first payments provider to offer least-cost routing in the Australian market. With Tap & Save, eligible debit card contactless transactions are processed through the cheapest network, saving you more on merchant fees.
5. Tyro Business Banking and Lending
   Did you know Tyro also gives its eligible EFTPOS customers the option to open a Tyro Bank Account? It’s a fee-free, interest-bearing account designed to help businesses manage their cash flow, with EFTPOS funds settled 7 days a week ². Customers with a Tyro Bank Account may also be eligible for a business loan up to $350k ³. Learn more about Tyro banking here.
6. No Cost EFTPOS
   No Cost EFTPOS  ⁴, Tyro’s version of No Fee EFTPOS, is a payment approach that helps recover EFTPOS fees such as EFTPOS transaction fees, EFTPOS machine rental, and paper roll costs via surcharging. This means that a surcharge is automatically applied to a customer’s purchase, therefore allowing businesses to recover all of their costs of taking electronic payments.

One solution, many benefits:

Tyro’s integrated payments distinguish it as an exceptional POS solution, featuring customised pricing, local Australian customer support available 7 days a week, and a robust security framework that includes ongoing independent audits and reliable hosting partners, all together to ensure every transaction is both seamless and secure.

Along with the immediate $20,000 asset write-off, small businesses can take advantage of additional tax benefits before June 30th, including the energy efficiency bonus deduction, the small skills and training boost and more. You can learn more about small business deductions here.

Nearing the deadline, get started today!

Implementing a new Tyro integrated POS system is straightforward: 

1. Consult with your accountant about your eligibility for the $20,000 instant asset write-off.
2.  Assess your business needs and identify the POS features most valuable to you
3.  Contact Tyro to discuss integration options with your preferred POS provider
4.  Ensure proper documentation is maintained for tax purposes.

Disclaimer: This blog provides general tax information and does not constitute financial advice. Please consult a financial advisor for advice tailored to your personal circumstances.