The end of financial year is fast approaching – and so is the deadline for small businesses to claim the $20,000 Instant Asset Write-off. With many SME’s unaware of the opportunity, brokers can play a key role in helping their clients invest in productive assets – and reduce their taxable income.
Every small business owner loves a tax saving.
Yet OnDeck research shows many small business owners are in the dark about the Instant Asset Write-off (IAWO).
“One in three are not making the most of Instant Asset Write-off”
Over one in three (36%) admit they are not making the most of the IAWO, while two in five (38%) small businesses simply don’t know if they’re using it or not.
This presents a chance for brokers to boost their own revenue before 30 June and help their small business clients enjoy valuable tax savings.
What is the IAWO?
This IAWO allows businesses to claim an immediate tax deduction for assets purchased, rather than depreciating the assets over their useful life.
Here’s a rundown of the rules[1]:
- Business total turnover must be below $10 million
- Each asset must be priced at $20,000 or less.
- The purchased assets can be new or second-hand.
- Can be used to claim multiple assets
- Assets must be installed and ready for use by 30 June 2025 to qualify for the deduction.[2]
“Claim an immediate tax deduction for assets priced up to $20,000.”
With only weeks to go until the cut-off date, small businesses will rely on the support of their broker to secure fast funding that ensures an asset is ready to go by the end of the financial year.
That makes it worth having conversations about the IAWO with your small business customers.
More than a tax saving – a more productive business!
Around one in five OnDeck loan applications are typically for business equipment.
At this time of year, that jumps to about two in five applications as small businesses take advantage of the IAWO.
“Around one in five loan applications are for business equipment.”
But new assets can also help make a business more productive.
What’s eligible for IAWO?
Here are some of the uses we see that can be eligible for the IAWO:
- Office upgrades – new tech, new office equipment or furniture.
- Tradies – replace worn tools and equipment or upgrade to the latest gear.
- Become retail ready – new shop fittings and tech can see retailers head into the new financial year primed for higher sales.
- Café equipment boost – ovens, grinders, fridges – they can all be upgraded before 30 June.
Cameron Poolman, CEO of OnDeck Australia, says, “With only weeks remaining in the current financial year, there is still time for eligible businesses to make a strategic purchase and reduce their taxable income by taking advantage of the IAWO.”
He adds, “This important tax break gives small businesses an immediate reward for investing in assets that can boost productivity – like vehicles, machinery, tools, and office equipment.
“It can also help businesses expand into new products or services or enhance their customer experience and workplace appeal through renovations or fit-outs.
“That makes the IAWO an important issue for brokers to discuss with their small business clients.”
Even better, as the IAWO drives a reduction in the company’s annual tax bill, it can also free up funds for investment in other areas of the business such as marketing, research, or staff development.
What can’t be claimed?
Of course, small businesses should always speak with their tax professional before claiming a deduction for big ticket buys.
“Small businesses should speak with their accountant.”
In previous years the ATO has knocked back some pretty whacky claims for asset purchases including[3]:
- A mechanic trying to claim an air fryer, microwave, 2 vacuum cleaners, a TV, gaming console and gaming accessories.
- A truck driver tried to claim swimwear because it was hot where they stopped in transit and they wanted to go for a swim.
- An earthmoving business tried to claim a yacht[4].
- reports a trend of big-ticket luxury purchases being passed off as business expenses.
It’s a no-brainer that small businesses should speak with their accountant.
Act fast to secure funding sooner
If your small business clients are eager to take advantage of the IAWO, OnDeck’s Lightning Loans provide fast funding that can help your customers purchase eligible assets. With a median approval time of just 1 hour and 26 minutes in May[5], there’s plenty of time to act before the 30 June deadline.
“Lightning Loans provide fast funding that can help your customers purchase eligible assets.”
Cameron Poolman, CEO of OnDeck, says, “We are all about empowering brokers to help their small business customers achieve their goals.
“That’s why we’ve made our loan process quick and easy.
“It’s a win for brokers – and a win for their small business customers.”
Talk to OnDeck direct by calling us on 1800 676 652 or visit https://www.ondeck.com.au/partner/, and find out how our turbo-charged finance can help build your broking business while helping your small business clients boost productivity and pocket valuable savings on tax in the process.
Submit a scenario now
[1] https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off
[2] https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/small-business-support-20000-dollar-instant-asset-write-off
[3] https://www.ato.gov.au/media-centre/ato-unveils-wild-tax-deduction-attempts-and-priorities-for-2025
[4] https://www.charteredaccountantsanz.com/news-and-analysis/media-centre/press-releases/a-luxury-yacht-a-tropical-island-trip-and-hair-cuts-tax-specialists-reveal-the-cheekiest-claims
[5] Median time taken from broker application submission to approval for Lightning Loans up to $175K in May 2025. Processing times vary for individual applications and depend on the completeness and accuracy of application materials, verification process, and external factors.
* Important information: OnDeck does not provide tax, legal, or accounting advice. Any references to tax obligations or financial matters are for general information only and should not be relied upon. We recommend individuals speak with a qualified tax professional or financial advisor for guidance specific to their situation.
