Research by small business lender OnDeck Australia urges small businesses to act now to take advantage of key business tax breaks.
- One in four (26%) of small businesses nationally say they are taking advantage of the $20,000 Instant Asset Write-Off (IAWO)
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Three in four small businesses may be missing out on the IAWO – 36% of small businesses admit they are not making the most of the IAWO, and two in five (38%) simply don’t know.
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76% of small businesses are confident about the business deductions they can claim, though 32% rely on the advice of their accountant.
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84% of small businesses say they are up to date with their tax planning and obligations.
With the end of financial year fast approaching, new research from leading small business lender OnDeck Australia reveals that a majority of small businesses are overlooking a key tax-saving opportunity – the $20,000 Instant Asset Write-Off (IAWO).
OnDeck’s survey found only one in four (26%) small businesses nationally are taking advantage of the IAWO.
The IAWO allows businesses with aggregated turnover below $10 million to claim an immediate tax deduction for assets priced up to $20,000[1] rather than depreciating the assets over their useful life.
Despite the tax savings and cashflow benefits of the IAWO, one in three (36%) small businesses admit they are not making use of the deduction, while two in five (38%) are in the dark about whether they are tapping into the IAWO.
Mr Cameron Poolman, CEO of OnDeck Australia, says, “This should be a wake-up call for the nation’s small business community.”
“With only weeks remaining in the current financial year, there is still time for eligible businesses to make a strategic purchase and reduce their taxable income. But the asset must be in place by 30 June this year to claim the IAWO.
“This important tax break gives small businesses an immediate reward for investing in assets that can boost productivity – like vehicles, machinery, tools, and office equipment. It can also help businesses expand into new products or services, or enhance their customer experience and workplace appeal through renovations or fit-outs.
“Moreover, the IAWO reduces a small business’s taxable income, driving a reduction in the company’s annual tax bill. This can free up funds for investment in other areas of the business such as marketing, research, or staff development.”
Access to commercial finance could allow more small businesses to utilise the IAWO. Previous OnDeck research shows one in five (18.3%) small business owners would use additional funding to upgrade equipment or facilities.
“With only weeks to go before 30 June, I encourage small businesses to speak with their tax adviser to understand if they would benefit from the IAWO in the current financial year,” said Cameron.
For business owners looking to take advantage of the IAWO, many use OnDeck’s Lightning Loans to access fast funding that can help them purchase eligible assets in time for the EOFY deadline.
“This empowers small business owners to act fast, secure the funding they need to invest in their company, and make the most of a valuable tax saving before 30 June,” concluded Cameron.
About the Research
Independent research was conducted online in March 2025 by Octopus Group on behalf of OnDeck Australia, surveying over 500 small business owners nationwide.
Sources:
[1] https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off
*Important information: OnDeck does not provide tax, legal, or accounting advice. Any references to tax obligations or financial matters are for general information only and should not be relied upon. We recommend speaking with a qualified tax professional or financial advisor for guidance specific to your situation.
