With 15 days until the end of the 2025–26 financial year, Colac businesses considering the instant asset write-off need to make a clear decision. The question is not what can be bought before 30 June. It is what genuinely needs replacing, what the business can afford and what can be put into use before the deadline.
Rushed EOFY spending can lead to unsuitable equipment, unplanned costs or installations that cannot be completed properly in time. The practical approach is to separate urgent replacements from upgrades that belong in the 2026–27 plan.
What the 2025–26 rule means now
ATO guidance for 2025–26 states that eligible small businesses using the simplified depreciation rules may be able to immediately deduct the business-use portion of eligible depreciating assets costing less than $20,000 each.
The business generally needs aggregated turnover of less than $10 million. The asset must also be first used or installed ready for use by 30 June 2026.
Ordering equipment, paying an invoice or receiving a delivery before 30 June does not automatically satisfy the rule. The asset needs to be ready to perform its intended business function.
Your accountant or registered tax adviser should confirm whether the business and proposed purchase qualify. Coltek IT can confirm whether the equipment is appropriate, available and realistic to deploy before the deadline.
Separate urgent replacements from planned upgrades
At this stage of June, not every IT improvement should be treated as urgent.
A purchase may need to proceed now when delaying it would leave the business exposed to a clear operational or security risk. Equipment that is already unreliable, disrupting work or unable to support required software may have a valid replacement case.
The decision should be based on the cost and risk of waiting, not simply on the availability of a tax deduction.
If the current equipment is stable and the proposed upgrade is mainly intended to improve convenience or provide future capacity, there may be no reason to force the purchase into June. The business may get a better result by placing it in the new financial year’s budget, confirming the correct specification and scheduling the work at an appropriate time.
The instant asset write-off may affect when an eligible deduction is claimed, but it does not reimburse the purchase price. The business still needs to fund the asset, so the purchase must make commercial sense.
Confirm the complete deployment date
Delivery is not always completion.
A replacement computer may need security controls, business applications, user access and data transfer before it is ready. Network, backup or server equipment may require configuration and testing.
The practical question is when the asset will be ready to do the work it was purchased for.
With only two weeks remaining, stock availability, freight and installation schedules matter. Where equipment needs to be ordered in, the delivery date must leave enough time for setup and handover.
Ask for a confirmed deployment plan before approving the order. It should identify the equipment, the expected installation date and anything the business needs to provide.
If the work cannot be completed properly by 30 June, do not accept an unsuitable product or reduced installation standard to meet the deadline. Ask your accountant how the purchase may be treated in the next financial year and schedule the project properly.
Protect cash flow
An EOFY deduction should not come at the expense of cash needed for normal operations.
Before approving a purchase, consider the full cost and payment timing. If replacing the asset now improves reliability, reduces an immediate risk or supports required work, bringing the purchase forward may be reasonable. If the business case is weak, the deadline should not strengthen it.
The accountant should confirm the tax treatment. The IT provider should confirm whether the purchase is necessary, suitable and achievable within the available time.
Move non-urgent work into the 2026–27 plan
The most useful result of an EOFY review may be deciding what should happen next rather than buying everything now.
Any non-urgent equipment identified during the review should be moved into a documented replacement plan. The plan should state what needs attention, why it is likely to require replacement, the expected budget and the preferred timing.
This gives the business visibility over technology costs before they become urgent. It also gives Coltek IT time to assess compatibility, dependencies and installation requirements.
Planning earlier improves product choice. The business is not restricted to what happens to be available in late June, and installations can be scheduled around workload and operational commitments.
The aim is to avoid making significant technology decisions only when something breaks or when the financial year is about to end.
Set the next review date now
Once the immediate decisions are complete, schedule the next IT asset review for the first half of 2026–27.
A current asset register should show the important equipment the business relies on, whether it remains under warranty and when replacement is expected. It only needs to be accurate enough to support budgeting and risk decisions.
An earlier review gives the business time to discuss planned expenditure with its accountant and gives Coltek IT enough notice to scope, quote and schedule the work. It also reduces the chance of several important devices becoming due for replacement at the same time.
What to do before 30 June
Focus only on purchases that address a genuine and current business need.
Confirm the proposed purchase with your accountant. Then ask Coltek IT whether the correct equipment can be supplied and installed ready for use by 30 June. Proceed only when the business need, available cash, tax advice and deployment date align.
Move everything else into the 2026–27 replacement plan with a budget and target date.
Coltek IT can help assess existing equipment, prioritise replacements and plan upcoming technology expenditure.
The EOFY deadline matters, but it should not control the whole IT strategy. Use the remaining time to complete the purchases that cannot wait and establish a clear plan for those that can.
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.