$20K Instant Asset Write-Off: Your Last Chance to Claim It – this EOFY 2025 might be your final opportunity to make the most of a generous tax break.
If you’re a tradie or small business owner, you can currently claim an instant deduction on eligible assets under $20,000 (ex-GST). But this ends on 30th June 2025, and there’s no guarantee the government will extend it. If it reverts to the old $1,000 limit, you could miss out big time.
Why This Matters for Tradies and Small Business Owners
This tax incentive isn’t just some nice-to-have policy. It’s one of the most practical ways to invest in your business and reduce your tax bill at the same time.
Here’s what it means in plain terms:
✅ You can claim a full deduction on eligible assets under $20K Ex-GST
✅ It applies to things like tools, utes, trailers, tech, and work gear
✅ Your business must have a turnover of less than $10 million
Let’s say you buy a new compressor or upgrade your ute for under $20K. Rather than depreciating that cost over several years, you can write off the entire amount this financial year.
That means less tax, more deductions, and a stronger position heading into EOFY 2025.
Want to double-check the rules? You can read more about it on the ATO’s official asset write-off page.
What Should You Do Now?
Don’t leave it until June. Here’s how to make the most of it:
✔ Plan Ahead
Waiting until the last minute could mean stock shortages, delivery delays, or missing the window entirely. If there’s equipment you’ve been thinking about buying, now’s the time to get moving.
✔ Check Eligibility With Your Accountant
Make sure your business qualifies and that the items you’re buying fit the criteria. Not everything is covered, and your accountant can clarify what counts and what doesn’t.
✔ Invest Strategically
This isn’t just about spending for the sake of it. Buy what will make your business more efficient, help you take on more work, or replace gear that’s on its last legs.
Don’t Wait for the Budget
Could the government extend the threshold? Maybe. But there’s been no formal commitment yet. If it drops back to $1,000, this really could be your last chance to make a big claim.
At Tradies Bookkeeping, we help small business owners and tradies across Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart, Darwin, and beyond keep their books up-to-date and get ready for tax time – without the last-minute panic.
📧 bettina@tradiesbookkeeping.com.au
📱 0424 467 921
Planning a purchase? We’ll help you get the timing right, record it properly in Xero, and make sure you don’t miss out when it matters most.