Good news for Perth small businesses: the $20,000 instant asset write-off has been extended to 30 June 2026. If you've been putting off upgrading your IT, now's the time.
Here's how it works, what qualifies, and what IT upgrades will give you the best return on investment.
How the instant asset write-off works
The instant asset write-off allows small businesses with an aggregated turnover of less than $10 million to immediately deduct the cost of eligible assets up to $20,000 per asset.
Instead of depreciating the cost over several years, you claim the full deduction in the financial year you purchase and install the asset. For a business in the 25% tax bracket, a $20,000 purchase effectively costs you $15,000 after the tax deduction.
Key rules:
- The asset must cost less than $20,000 (excluding GST if you're registered)
- The asset must be first used or installed ready for use by 30 June 2026
- It applies per asset, so you can claim multiple items
- Your business must have an aggregated turnover under $10 million
IT assets that qualify
Almost all business IT equipment and software qualifies. Here's what we recommend Perth businesses prioritise:
Hardware (best value upgrades)
| Item | Typical Cost | Why It Matters |
|---|---|---|
| Business laptops | $1,200–$2,500 | Replace slow machines that waste 30+ minutes per day |
| Desktop monitors (ultrawide) | $500–$1,500 | Dual or ultrawide screens boost productivity 20-30% |
| Network switches & access points | $500–$3,000 | Fix Wi-Fi dead zones and slow connections |
| NAS/server hardware | $2,000–$15,000 | Local backup and file storage |
| Printers/MFDs | $500–$5,000 | Replace unreliable machines |
Software & cloud subscriptions
While cloud subscriptions (like Microsoft 365) are typically expensed rather than depreciated, there are IT-related purchases that do qualify:
- Perpetual software licences (where you buy rather than subscribe)
- Project-based software implementations (e.g., CRM setup, Power BI dashboard development)
- Website development costs (treated as a capital asset)
- Cybersecurity hardware (firewalls, endpoint protection appliances)
Services that may qualify
Some IT services involve the creation of a capital asset:
- Custom business applications (Power Apps, web applications)
- Website redesign (if treated as a capital asset — talk to your accountant)
- Power BI dashboard development (a software asset with ongoing value)
Important: Always confirm eligibility with your accountant. Tax rules have nuances around the distinction between capital expenditure and operating expenses. We're IT people, not accountants — but we can help you identify what needs upgrading.
Five IT upgrades that pay for themselves
If you're going to spend the money, spend it on things that will genuinely improve how your business runs:
1. Replace laptops older than 4 years
A slow laptop costs you real money. If your team spends 20 minutes a day waiting for things to load, that's 86 hours per year per person. At $50/hour, that's $4,300 in lost productivity — far more than the cost of a new laptop.
2. Fix your Wi-Fi
If your office Wi-Fi drops out or slows down, a proper business-grade access point ($300-$800) will fix it permanently. Stop using the consumer-grade router your ISP gave you.
3. Get proper backups
If your data isn't backed up off-site, you're one ransomware attack or hardware failure away from catastrophe. A cloud backup solution costs $10-30/user/month and could save your entire business.
4. Invest in a Power BI dashboard
Instead of spending hours pulling reports together every month, invest in a proper dashboard that pulls data from Xero, your CRM, and your other tools automatically. It's a one-time investment that saves hours every week.
5. Upgrade your cybersecurity
If you don't have endpoint protection, email filtering, and MFA (multi-factor authentication) on every account, you're exposed. These are the basics, and the cost is minimal compared to the damage a breach can cause.
How to make the most of it before June 30
- Audit your current IT — What's slow, broken, or missing? Start with the biggest pain points
- Get quotes before May — Lead times for hardware can be 2-4 weeks, so don't wait until June
- Talk to your accountant — Confirm what's eligible for the write-off in your situation
- Install before June 30 — The asset must be installed and ready for use, not just ordered
Need help deciding what to upgrade?
We do free IT assessments for Perth businesses. We'll review your current setup, identify what's costing you time and money, and give you a prioritised upgrade plan — so you can make the most of the write-off before the deadline.
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