The end of the 2025–26 financial year is approaching. If your business is considering an IT purchase under the instant asset write-off, the key deadline is not the order date or invoice date. The asset must be first used or installed ready for use by 30 June 2026.
That distinction matters for technology. Equipment delivered in late June may still need configuration, security controls, software and data migration. If it is not ready for its intended business use by 30 June, it may not meet the timing requirement for the 2025–26 income year.
Geelong businesses should confirm both eligibility and deployment timing before approving a purchase.
What the 2025–26 instant asset write-off covers
Under Australian Taxation Office guidance for the 2025–26 income year, eligible small businesses may be able to claim an immediate deduction for the business-use portion of an eligible depreciating asset costing less than $20,000.
The business generally needs aggregated turnover of less than $10 million and must apply the simplified depreciation rules. The threshold applies per asset. Assets costing $20,000 or more are not immediately deductible under this threshold and may instead be added to the small business pool, subject to the applicable rules.
The write-off is a tax deduction, not a rebate. The benefit depends on the business’s tax position and the extent to which the asset is used for a taxable business purpose.
Speak with your accountant or registered tax adviser before purchasing. They should confirm whether your business and the proposed asset qualify.
Ready for use is the practical deadline
For IT equipment, “installed ready for use” means more than delivery.
A new computer normally needs to be prepared before a staff member can rely on it. It may require system updates, endpoint protection, multi-factor authentication, business applications and access to company data. Existing data may also need to be migrated.
This work should not be rushed. Poor deployment can leave staff without access to essential systems or result in missing security controls.
The same issue applies to infrastructure. Network and backup equipment needs configuration and testing. A server replacement may involve compatibility checks, migration planning and scheduled downtime.
The relevant question is simple: can the asset be supplied, configured and ready for normal business use by 30 June?
If the answer is uncertain, do not assume the purchase qualifies for this financial year. Confirm the position with both your accountant and IT provider.
Prioritise equipment that already needs replacing
The instant asset write-off should support a necessary purchase, not create one.
Start with equipment that already has a clear replacement case, such as a device that is unreliable, unsuitable for required software or generating repeated support costs. The business need should be clear before a product is selected.
Avoid replacing equipment that is still suitable simply to bring forward a deduction. The business must fund the purchase, and an unnecessary asset can reduce cash flow without improving operations.
Specifications also matter. A low-cost computer is not good value if it cannot support the user’s workload for a reasonable service period. An expensive device is difficult to justify when the user only needs standard office applications.
Your IT provider should recommend equipment based on work requirements, expected life, warranty, software compatibility and security. Your accountant should advise on tax treatment. Both decisions should be completed before purchase.
Allow for stock, scheduling and installation
Mid-June is late for an unplanned technology project.
Product availability may be limited where a business needs a specific model or configuration. Delivery dates can move, and installation capacity may be restricted near EOFY.
Before placing an order, ask for a realistic completion date rather than an estimated dispatch date. Confirm that the equipment is available, configuration can be scheduled and the user or site will be ready for installation.
A single computer may be straightforward when the requirements are known. A multi-device rollout or infrastructure change may require more coordination and testing.
If the work cannot be completed properly by 30 June, schedule it for the new financial year. A tax deadline is not a reason to accept unsuitable equipment or a rushed installation.
Keep records that support the timing
The invoice does not show when an asset became ready for use.
Keep purchase records together with evidence of deployment, such as an installation record, service report or device assignment date. Your accountant can advise what records are appropriate.
Do not rely only on proof of payment or delivery.
Plan technology purchases earlier next year
EOFY pressure can be reduced with a current IT asset register and replacement schedule.
Record the age, warranty status and expected replacement year of important equipment. Review that information during budgeting rather than waiting until June. This provides time to confirm specifications, obtain tax advice and schedule installation with less disruption.
Planning also prevents several devices reaching the end of their useful service period at once. Replacements can be staged according to risk, operational importance and budget.
Tax treatment may influence timing, but it should sit within an established technology plan.
Act now, but confirm the full process
Businesses considering an EOFY IT purchase should contact their accountant and IT provider now. Confirm the tax position, then confirm whether suitable equipment can be sourced, configured and installed ready for use by 30 June 2026.
IT How To can review the requirement, recommend suitable business technology and advise whether deployment before the deadline is practical.
Do not treat an order confirmation as completion. For the 2025–26 instant asset write-off, the asset needs to be ready to do the job.
Important: This article provides general information only and does not constitute tax, accounting or financial advice. Obtain advice from a qualified accountant or registered tax adviser before making purchasing or taxation decisions.