EOFY tax deductions for small businesses

As we head into the EOFY period, it’s critical to get across your business’s finances and so you can start the new financial year strong. It’s time to make sure you’re not paying more tax than you should by using cash flow management tools to organise your business, considering your working capital or learning how to streamline your financial management.

Need to know now:

Here’s some tips for minimising tax liabilities at EOFY:

With a new financial year on the horizon, now is the time to familiarise yourself with changes to the temporary full expensing scheme, so your business can make the most of possible EOFY tax deductions.

What is the instant asset write-off?

As announced in the Federal Budget for the 2023-2024 financial year, the instant asset write-off threshold has been temporarily increased to $20,000 and extended until the end of the 2023-2024 financial year.

Small businesses with a turnover of up to $10 million will be able to immediately deduct the full cost of eligible assets that cost less than $20,000 and are first used or installed ready for use between 1 July 2023 and 30 June 2024.

The benefit was announced as a boost to post-pandemic business recovery when it was introduced in 2020.

According to the Australian Tax Office (ATO), the instant asset write-off does not apply for assets held or installed after 6 October 2020 – deductions for these assets are covered by temporary full expensing.

The original instant asset write-off benefit “applied until 6 October 2020 on all eligible purchases up to $150,000,” explains Mark Chapman, Director of Tax Communications at H&R Block. “On that date, the cap was removed, so an immediate tax deduction was available for all eligible capital purchases without limit. That is temporary full expensing.”

What is temporary full expensing?

“Temporary full expensing applies to all eligible assets both acquired and first used or installed by 30 June 2023,” says Mark. “To be eligible, businesses must have an aggregated annual turnover of less than $5 billion.

“Don’t forget, the purchase must be made by 30 June 2023 to qualify and the asset must actually be in use or available for use by that date. If the asset is purchased from 1 July 2023, the tax deduction is instead spread over a number of years.”

The asset can be new or secondhand.

According to the ATO, if you are ineligible for tax deductions under temporary full expensing you may still claim the depreciation deduction under instant asset write-off if the asset was purchased by 31 December 2020, and first used or installed ready for use before 30 June 2021.

Which assets are eligible for temporary full expensing?

Here’s a simple rundown of which assets may be eligible for temporary full expensing, depending on your business’s turnover:


less than $50 million
Turnover between
$50 million and $5 billion
New assets Eligible Eligible
Second-hand assets Eligible Ineligible
Improvements to assets Eligible Eligible
Assets purchased or improvements made prior to 6 October 2020, or after 30 June 2023 (at time of writing) Ineligible
(with exceptions)
Primary production assets Ineligible
(with exceptions)
Assets not used or located in Australia Ineligible
(with exceptions)


More Information

Of course, if all this talk of spending to invest in your business has you thinking cash flow, give me a call and I will provide you with a rundown on competitive funding options currently available to suit your goals.


THE FINEPRINT: The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. While all care and attention are taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.

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"I've spent most of my working life securing astute financial and lending solutions for both privately owned and publicly listed entities of all sizes – from large corporates to SMEs with a focus on debt management, cash flow solutions, equity raising and investment analysis."

Dimitri Grespos

Finance Consultant
  • Commercial Finance, Home Finance

Fortitude Valley, Brisbane

Dimitri Grespos’ award-winning career in banking and finance spans three decades specialising in private, corporate, and commercial sectors.

I have held senior management roles, mostly in private banking, in some of the country's largest financial institutions, including ANZ, BankWest, Macquarie, St George, Westpac and its wealth and investment arm, BT Private Wealth and have an excellent understanding of current lending frameworks.