$20K Instant Asset Write-Off 2025-26: Smart Tech Buys Before 30 June

The $20K instant asset write-off runs until 30 June 2026. Australian businesses with under $10M aggregate turnover can deduct the full cost of any asset under $20,000 (including websites, software, and digital tools) in the year it is first used (ATO, Treasury Laws Amendment Act, passed 27 November 2025).

Key Takeaways

• The $20,000 threshold is legislated until 30 June 2026, then reverts to $1,000
• Multiple assets each under $20K all qualify. There is no overall cap.
• Websites, custom software, SaaS subscriptions, computers, and development services all qualify if billed under the threshold
• Eligibility: aggregate turnover under $10M, asset first used or installed-ready between 1 July 2025 and 30 June 2026
• The law passed the Senate 27 November 2025 (Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025). Full legislation detail on ato.gov.au
• WA businesses can stack this with the SBDC Small Business Growth Grant (up to $10K matched) and the WA Local Capability Fund (up to $50K)

On 1 July 2026, the instant asset write-off threshold drops from $20,000 back to $1,000.

That’s not a small change. It’s a cliff.

Here’s what that means in real money: a $12,000 website commissioned before 30 June saves you $3,600 in tax this financial year (at 30% company rate). The same website commissioned on 1 July saves you $300 in year one.

That’s a $3,300 cash flow difference. For a single asset.

The $20K write-off isn’t just a tax incentive. For a business upgrading its digital tools before the deadline, it’s essentially a 30% discount funded by the ATO.

What Happens on 1 July 2026

After 30 June, the threshold drops back to $1,000. A $12,000 website commissioned on 1 July gives you a first-year deduction of $1,000. The remaining $11,000 depreciates over multiple years at a fraction per annum.

The diagram below shows the tax impact across asset types at the 30% company rate.

What Qualifies

The ATO’s definition is broader than most business owners realise.

Assets that qualify:

• Websites and web applications: full redesigns, new builds, and custom feature development
• Software licenses and subscriptions: when the item is distinct and under $20K per licence
• SaaS implementation and setup costs: when invoiced as a single asset
• Computers, laptops, monitors, and peripherals
• Development tools, testing equipment, and server hardware
• Business automation tools: when the initial setup cost is under $20K

The key condition: the asset must be first used or installed ready for use between 1 July 2025 and 30 June 2026. A deposit paid in June 2026 for a project that isn’t live until August 2026 doesn’t qualify for the current year.

What Does Not Qualify

• Assets at or over $20,000 (the full item cost, not the deposit)
• Assets from a related-party transaction at above-market prices
• Luxury cars subject to the car limit
• Assets not used in generating assessable income (personal use only)
• Assets from a business with aggregate turnover above $10M

How to Use It for a Website or Digital Project

The cleanest approach: structure your project invoice to be under $20,000 if possible.

If your project is larger, consider scoping it in stages: website Phase 1 under $20K, Phase 2 as a separate asset in a later period. Talk to your accountant before structuring this.

The RockingWeb monthly retainer, for example, is a monthly service, not a single capital asset. For clients who want the write-off benefit, we can scope an initial project (audit, new landing pages, technical SEO setup) as a standalone deliverable under the threshold.

The write-off applies to the asset, not the whole project. A $45K website doesn’t qualify. But a $19,800 Phase 1 website plus a separate $14,000 Phase 2 feature build? Both might. Talk to your accountant.

WA Grants You Can Stack With This

SBDC Small Business Growth Grant (WA)
Up to $10,000 matched funding for digital marketing, e-commerce, and ICT tools. If the grant contributes $10K toward a $15K website project, your out-of-pocket cost is $5K. You can still claim the full $15K as an asset deduction (the grant amount reduces your cost base for CGT purposes in future, not your immediate deduction). Confirm with your accountant.

Current status: SBDC Growth Grants for 2025-26 are closed (the $1M pool was exhausted). The 2026-27 round is expected to open July 2026 at smallbusiness.wa.gov.au/growth.

WA Local Capability Fund: Digital Transformation Round
Up to $50K (Stream 2) for advanced technology adoption including AI, automation, ERP/CRM, and cybersecurity. 50% co-contribution required. The 2025-26 round closed 4 September 2025 and $1.6M was disbursed in December 2025. The 2026-27 round is expected to open July 2026.

More detail at wa.gov.au, Local Capability Fund.

Construction Training Fund (CTF): Software Skills
$31/hour subsidy (max $248/day or 70% of course cost) for software-skills training for WA construction industry workers. Ongoing. Relevant if your team is adopting new project management software, BIM, or ERP tools.

More detail at ctf.wa.gov.au, Making a Claim.

The Checklist Before 30 June 2026

• Identify which digital assets your business needs (website, software, tooling)
• Confirm aggregate turnover is under $10M
• Confirm each asset is under $20,000 per item
• Ensure the asset will be live and in use before 30 June 2026, not just ordered
• Get a tax invoice dated before 30 June
• Talk to your accountant about structuring if your project spans the threshold
• Check WA grants for co-funding (LCF, SBDC). Stacking is possible.

Get Your Website Done Before the Deadline

RockingWeb handles web design, SEO, and automation from Rockingham. Projects start from $3,000.

If you need a new website, a technical SEO overhaul, or a CRM/automation setup before 30 June, contact us here and we will scope a project that fits both the deadline and your budget.

ABN: 918 7857 0066. All work done in-house, no outsourcing.

This post is for general information. It is not tax advice. Speak to a registered tax agent or accountant before making decisions based on your specific circumstances. ATO guidance is at ato.gov.au.