The Australian Government has confirmed the $20,000 Instant Asset Write-Off for the 2025-26 financial year, and for equipment finance operators in transport, construction, agriculture and earthmoving, the window to act is closing fast.
Here is everything you need to know to take full advantage before 30 June 2026.
What Is the Instant Asset Write-Off?
The Instant Asset Write-Off (IAWO) allows eligible small businesses to immediately deduct the full cost of a depreciating asset in the income year it is first used or installed ready for use, rather than depreciating it over several years.
For the 2025-26 financial year:
- Threshold: Up to $20,000 per asset
- Who qualifies: Businesses with an aggregated annual turnover of less than $10 million
- Deadline: Asset must be first used or installed ready for use by 30 June 2026
Assets over $20,000 can still be placed in the small business simplified depreciation pool and depreciated at accelerated rates.
What Assets Qualify?
Almost any depreciating asset used in your business can qualify, including:
- Trucks, trailers, prime movers and refrigerated vehicles
- Excavators, dozers, loaders and other earthmoving equipment
- Tractors, harvesters and farm machinery
- Forklifts, telehandlers and crane trucks
- Workshop tools, fitouts and technology
"If you have been thinking about upgrading your rig, your excavator or your fleet, this is the year to do it. The write-off puts real cash back in your pocket before tax time."
How Does It Work With Equipment Finance?
Here is the important bit that most brokers do not explain clearly: you do not need to pay cash to claim the write-off.
If you purchase an asset using a Chattel Mortgage (also called an equipment loan), you take ownership of the asset at settlement, meaning the asset is "acquired" in the eyes of the ATO at that point. You can claim the full write-off in your tax return even though you are still making repayments.
This means you could:
- Finance a $19,500 tipper truck upgrade through Equifund
- Settle before 30 June 2026
- Claim the full $19,500 as a deduction this financial year
- Keep your working capital intact while reducing your tax bill
Finance Structures That Qualify
| Structure | Ownership | Write-Off Eligible? |
|---|---|---|
| Chattel Mortgage | You own the asset | ✓ Yes |
| Commercial Hire Purchase | You own after final payment | ✓ Yes |
| Finance Lease | Lender owns asset | ✗ No (lease payments deductible instead) |
| Operating Lease / Rental | Lender owns asset | ✗ No |
Always confirm your specific structure with your accountant or tax adviser.
Key Dates to Lock In
Lenders are processing high volumes in the lead-up to EOFY. Settlement times can blow out by two to three weeks in May and June. To guarantee your asset is settled by 30 June 2026, you should:
- Apply by mid-May 2026 at the latest
- Have your financials (last two years of tax returns or BAS) ready
- Choose an asset that is available from stock (not custom order)
Frequently Asked Questions
What is the Instant Asset Write-Off for 2026?
The Instant Asset Write-Off allows eligible Australian businesses to immediately deduct the full cost of qualifying assets up to $20,000 in the 2025-26 financial year. Each asset must cost under the threshold. Vehicles and equipment used for business qualify; private-use assets do not.
What assets qualify for the Instant Asset Write-Off in 2026?
Trucks, trailers, excavators, forklifts, farm machinery, and most business-use vehicles and equipment qualify if the asset costs under $20,000 and is used in your business. It must be new or used, and installed ready for use before 30 June 2026.
Do I need to own the asset outright to claim the write-off?
You must take legal ownership of the asset. A chattel mortgage and hire purchase both transfer ownership to you, so both qualify. A finance lease or operating lease does not transfer ownership, so the lender , not you , claims the depreciation benefit instead.
What finance structure works best with the Instant Asset Write-Off?
A chattel mortgage is the most common structure for maximising the write-off. You take ownership on settlement, claim the full asset cost as a deduction in the same tax year, and also claim the GST on the purchase price upfront on your next BAS.
Is the $20,000 threshold per asset or per business?
The $20,000 threshold applies per individual asset, not per business. A business can claim multiple assets under the threshold in the same year. Assets costing over $20,000 cannot be split to fall under the threshold , they depreciate under the small business pool rules instead.
How Equifund Can Help
Equifund compares a wide panel of specialist lenders to find the sharpest rate for your deal. Our team specialises in heavy equipment finance for Australian operators and we know which lenders move fast before EOFY and which ones drag their feet.
- Pre-approval in 24 hours
- No impact on your credit score to get a rate
- Finance amounts up to $2M
- Owner-operators, ABN holders and company structures welcome
Do not wait until June to start the conversation. The lenders' queues get longer every week from April.
This page is general information only and does not constitute tax, financial or legal advice. Tax outcomes depend on your individual circumstances. Speak to your tax adviser before relying on any information here. Equifund is a credit broker, not a tax adviser or financial planner. Finance is subject to lender approval. Terms, conditions, fees and charges apply. Equifund Financial Group, ACN 647 510 790, Australian Credit Licence 389328.
Sources: ATO, Instant Asset Write-Off. Figures are current at the time of writing and may change.