Byteway helps Australian businesses choose and set up the technology they run on, so this is a question we get asked constantly around tax time: what is actually worth buying with the instant asset write-off? The deduction gets all the attention, but the deduction is not the win. The win is buying something that keeps paying you back long after the tax benefit is banked. This guide covers what is worth your money, and one important detail about the write-off’s status you should get straight first.
The $20,000 instant asset write-off lets eligible small businesses (aggregated turnover under $10 million) immediately deduct the full cost of an eligible asset under $20,000, rather than depreciating it over years. In the May 2026 Federal Budget the Government announced it will make the $20,000 threshold permanent from 1 July 2026, ending a decade of year-by-year extensions. Important: as this is written, that permanent measure has been announced but is not yet law, so confirm the current status with the ATO or your tax agent before you buy. The smarter question is not “what can I deduct” but “what should I buy that keeps earning after the deduction”. For most businesses, that is technology.
First, get the status straight (because it matters before you buy)
There is a lot of confident writing online saying the $20,000 instant asset write-off “is now permanent”. The honest position is slightly more careful, and it matters because you are about to spend money on the strength of it.
Here is where things actually stand:
- For 2025–26, the $20,000 threshold was law. Eligible assets first used or installed ready for use by 30 June 2026 could be written off.
- From 1 July 2026, the Government announced in the May 2026 Budget that the $20,000 threshold will become a permanent feature of the tax system, via the Treasury Laws Amendment (Tax Reform No. 2) Bill 2026.
- As this is written, that permanent measure is not yet law. It has been announced and is widely expected to pass, but until the bill passes Parliament, the standing legislated threshold from 1 July 2026 is technically much lower.
None of that is a reason to panic. The measure has strong support and is expected to go through. But it is a reason to do one simple thing before a major purchase: confirm the current threshold and rules with the ATO website or your registered tax agent. We are an IT and telco provider, not your accountant, and the smartest EOFY buyers always check the tax position with their adviser and the technology fit with us.
How the write-off actually works?
The instant asset write-off lets an eligible business immediately deduct the full cost of an eligible asset in the year it is first used or installed ready for use, instead of claiming smaller depreciation amounts over several years. The core rules, when the $20,000 threshold applies:
- Who: businesses with aggregated annual turnover under $10 million, using the simplified depreciation rules.
- How much: the asset must cost less than $20,000. The threshold applies per asset, so you can write off multiple qualifying items.
- When: the asset must be first used or installed ready for use within the income year you claim.
- What it is not: it is a deduction, not a rebate. It reduces your taxable income, so the cash benefit is the asset cost multiplied by your tax rate, not the full purchase price.
That last point is the one people misread, so it is worth being blunt about it in plain numbers below.
The mindset shift: the deduction is not the saving
Here is the trap. “It’s tax deductible” makes people feel like the item is free, or close to it. It is not.
If your business buys a $5,000 asset and your company tax rate is 25 per cent, the write-off reduces your tax bill by about $1,250. You still spent $5,000 to save $1,250. You are $3,750 out of pocket in real terms, in exchange for owning the asset now and deducting it now rather than over several years.
So buying something you do not need, purely for the deduction, is just a slightly discounted way to waste money. The deduction is a reason to bring forward a purchase you were going to make anyway, or to choose a better version of something you genuinely need. It is not a reason to buy for its own sake.
Which reframes the whole question. The smart EOFY move is not chasing the biggest deduction. It is buying the thing that keeps returning value long after the tax benefit is done. For most businesses, that means assets that make you more productive, more secure, or more resilient. In other words, usually technology.
What to actually buy?
If the goal is an asset that pays you back beyond the deduction, business technology is one of the strongest categories, because it compounds. Faster systems save time every day. Better security prevents losses. Reliable connectivity stops downtime. Here is where the write-off is well spent, all typically well under the threshold per item.
1. Computers, laptops and monitors that are actually fit for the work
The most common productivity drain in a small business is staff waiting on slow machines. If your team is on ageing laptops, replacing them is the least glamorous and often highest-return purchase you can make. A modern business laptop is comfortably under the threshold and pays for itself in recovered time. Dual monitors are a small spend with a genuine daily productivity return.
2. Servers, network gear and Wi-Fi that stops holding you back
Business-grade networking, a proper firewall, quality access points, and switching, is invisible until it fails, and then it is everything. Upgrading from consumer-grade gear to business-grade equipment improves speed, reliability and security at once. Individual items sit well under the threshold.
3. Cyber security hardware and tools
Given how much of our advice is about protecting businesses from fraud and attack, this is money well spent. Security appliances, backup hardware and the equipment behind multi-factor authentication and monitoring are exactly the kind of asset that prevents a five-figure loss for a four-figure spend. It also strengthens your Privacy Act reasonable-steps position.
4. A business phone system
If you are still on ageing handsets or a system tied to copper being retired, moving to a modern cloud phone system is a strong EOFY purchase. The handsets and hardware are typically well under the threshold, and the running cost usually drops afterwards, so it pays twice.
5. CCTV and physical security
For retail, hospitality, warehousing and any premises-based business, a modern CCTV system is a practical, deductible asset that protects stock, staff and the premises. Cameras and recorders generally fall under the per-asset threshold.
6. Digital signage and customer-facing screens
For businesses that sell in a physical space, digital signage is an asset that directly supports revenue, and it sits neatly in the write-off range.
The connecting theme: none of these is bought for the deduction. Each is bought because it earns, and the deduction simply improves the timing and the after-tax cost.
What not to buy just because it is deductible?
A short, honest list, because the write-off tempts people into these:
- Gear you will not use. A deduction on a shelf ornament is still a waste.
- Over-specified equipment. Buying far more capacity or capability than you need, because the deduction “makes it cheap”, usually does not.
- Something now that will be obsolete fast, purely to claim it this year, when waiting would get you a better asset.
- A cheap version that will cost more in downtime. The write-off applies either way, so buy the reliable one.
The write-off should make a good purchase slightly better. It should not turn a bad purchase into a defensible one.
Byteway Expert Insight
The pattern we see every EOFY is a business rushing to spend before 30 June to “get the deduction”, and buying slightly the wrong thing under time pressure. The classic version is replacing laptops with whatever is on the shelf that week, rather than machines matched to how the team actually works, or buying a security product nobody configures.
The permanence of the write-off, once it is law, quietly fixes this, and that is the underrated part of the change. If the $20,000 threshold is a permanent feature rather than a June deadline, you no longer have to rush. You can plan technology purchases around what your business actually needs and when, spread across financial years, and buy the right thing properly rather than the available thing quickly. Our best advice to clients is to use that certainty: decide what genuinely moves your business forward, get it specified correctly, and let the deduction be the timing bonus rather than the driver. The businesses that win with this measure are the ones who stopped treating it as a race.
How Byteway helps you spend it well?
Byteway helps you choose, buy and set up the right technology so the write-off funds an asset that keeps earning, not a rushed purchase you regret. That covers computers and networking, cyber security, business phone systems, CCTV and more, specified to your actual needs, installed properly, and maintained afterwards.
Where we fit:
- We assess what technology would genuinely improve your productivity, security or resilience.
- We specify and supply the right equipment, matched to your business, not the shelf.
- We install and configure it properly, so a security tool is actually secure and a new system actually works.
- We keep it running through our managed IT and cyber security services, so the asset keeps delivering.
Your accountant confirms the tax treatment. We make sure the thing you buy is worth owning.
Spend it on something that keeps paying you back
The instant asset write-off is a genuinely useful measure, and it is about to get better with permanence. The businesses that benefit most are the ones that use it to buy well, not just to buy fast.
Byteway helps you work out what technology will actually move your business forward, specify it correctly, and set it up so it keeps delivering long after the deduction is claimed. Talk to your accountant about the tax, and talk to us about the tech.
Book a free tech planning session before you buy. We will help you spend the write-off on assets worth owning.
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Frequently asked questions
Is the $20,000 instant asset write-off permanent now?
The Government announced in the May 2026 Budget that it will make the $20,000 threshold permanent from 1 July 2026. As at the time of writing, the measure is announced but not yet law and must pass Parliament. Confirm the current status with the ATO or your registered tax agent before purchasing.
Who is eligible for the instant asset write-off?
Businesses with aggregated annual turnover under $10 million that use the simplified depreciation rules. The asset must cost less than the threshold and be first used or installed ready for use within the income year you claim it. Your tax agent can confirm your eligibility.
Does the write-off mean the purchase is free?
No. It is a deduction, not a rebate, so it lowers your taxable income rather than refunding the price. The cash benefit is roughly the asset cost multiplied by your tax rate, so you still bear most of the cost. Buy assets you genuinely need, not just for the deduction.
Can I write off multiple items?
Yes. The threshold applies per asset, so you can immediately deduct multiple eligible assets as long as each one costs less than the threshold. This is why several business technology items, each under the limit, can often be claimed in the same year.
What technology is worth buying with it?
Assets that keep earning after the deduction: modern computers and monitors, business-grade networking, cyber security hardware, a cloud phone system, and CCTV. The best purchases improve productivity, security or resilience, so the value continues long after the tax benefit is claimed.
Should I rush to buy before 30 June?
Only if you were going to make the purchase anyway and it suits your business. If the $20,000 threshold becomes permanent as announced, the annual deadline pressure eases and you can plan purchases around genuine need rather than the calendar. Always confirm timing rules with your tax agent.