$20,000 Instant Asset Write-Off for Arborists: Complete 2025-26 Guide

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What Happens After 30 June 2026?

Unless the government legislates a further extension, the instant asset write-off threshold is scheduled to drop back to $1,000 from 1 July 2026. That would mean only assets costing less than $1,000 qualify for an immediate write-off, with everything else going into the depreciation pool.

In practice, the government has extended or modified the instant asset write-off multiple times over the past decade, and there is speculation it may be extended again. However, relying on a potential extension is poor planning. The confirmed rules give you until 30 June 2026 at the $20,000 threshold. Plan and act accordingly.

For a broader look at all the deductions available to your tree care business, see our comprehensive guide to arborist tax deductions in Australia.

Your EOFY Equipment Action Plan

Here is a practical checklist to make the most of the instant asset write-off before 30 June 2026:

1. Audit your equipment now. Walk through your yard and trucks. What is worn out, underperforming, or due for replacement? Make a list.
2. Price each item. Get quotes and confirm which assets fall under the $20,000 threshold. Use our equipment finance calculator to model the cash flow impact.
3. Prioritise purchases that improve safety and productivity. Newer chainsaws are lighter, faster, and safer. Better rigging gear reduces the risk of incidents that could shut your business down.
4. Order early. Supply chain delays can push delivery past 30 June. Place orders by mid-May at the latest for any equipment that is not available off the shelf.
5. Document everything. Record the purchase date, delivery date, and the date each asset was first used or installed ready for use. Keep invoices and receipts.
6. Talk to your accountant. Before committing to major purchases, confirm the tax treatment with your accountant. A 15-minute conversation can save you thousands. Book a free consultation with Arbour Advisory if you do not have an accountant who understands the arborist industry.

Need Help With Your EOFY Tax Planning?

The instant asset write-off is just one of many strategies available before 30 June. For a complete rundown of all 15 tax-saving opportunities, read our EOFY tax planning guide for arborists. And if you need help getting your BAS lodgements in order before year end, our BAS compliance guide covers everything from deadlines to fuel tax credits.

At Arbour Advisory, we work exclusively with arborists and tree care businesses. We understand your equipment, your seasonal cash flow, and the specific tax strategies that work for your industry. Whether you need help planning EOFY purchases, setting up your depreciation schedule, or reviewing your equipment finance arrangements, we are here to help.

Book your free EOFY planning consultation today and make sure you are claiming every dollar you are entitled to before 30 June 2026.

Frequently Asked Questions

Can I claim the instant asset write-off on a second-hand chainsaw or stump grinder?

Yes. Both new and second-hand assets qualify for the $20,000 instant asset write-off, provided they cost less than $20,000 (GST-exclusive) and are first used or installed ready for use before 30 June 2026. This includes used equipment purchased from another arborist, at auction, or through a dealer. The same documentation requirements apply: keep the receipt, record the purchase date and the date it was first used in your business.

What happens if my wood chipper costs more than $20,000?

Assets costing $20,000 or more do not qualify for the instant write-off. Instead, they are added to the small business simplified depreciation pool. You deduct 15% of the cost in the first year and 30% of the remaining balance each year after that. If the total pool balance drops below $20,000 at the end of a financial year, you can write off the entire remaining amount. For a detailed comparison of buying versus financing expensive equipment, see our buy vs finance chipper tax guide.

Can I claim the instant asset write-off if I finance the equipment through a loan or chattel mortgage?

Yes, in most cases. If you purchase the equipment through a chattel mortgage or hire purchase arrangement where you own the asset (or will own it at the end of the term), you can claim the instant asset write-off based on the full purchase price in the year the asset is first used or installed ready for use. However, if you use an operating lease or rental arrangement where you never own the asset, the write-off does not apply because you are not the owner. Instead, you claim the lease payments as an expense. Talk to your accountant about which finance structure gives you the best tax outcome. Our equipment finance service can help you compare options.

Is there a limit to how many assets I can write off in one year?

No. There is no cap on the number of assets you can claim under the instant asset write-off. The $20,000 threshold applies per asset, not in total. You could purchase 10 separate items at $19,000 each and write off all $190,000 in the same financial year, provided each asset individually costs less than $20,000 and meets all the other eligibility requirements.

I am a sole trader arborist. Do I qualify for the instant asset write-off?

Yes. The instant asset write-off is available to all small business entities with an aggregated annual turnover of less than $10 million. This includes sole traders, partnerships, trusts, and companies. Whether you are a one-person operation or running a business with 20 employees, the same rules and thresholds apply.

What is the difference between the instant asset write-off and temporary full expensing?

Temporary full expensing was a COVID-era measure that allowed businesses to immediately deduct the full cost of eligible depreciable assets of any value (with no cap) purchased between 6 October 2020 and 30 June 2023. That measure has ended. The current instant asset write-off has a $20,000 per-asset threshold and applies to assets first used or installed ready for use between 1 July 2024 and 30 June 2026. If you purchased large equipment during the temporary full expensing period, you may have already claimed those assets in full. For assets purchased now, the $20,000 threshold applies.