EOFY 2025: Federal Budget Updates & IAWO

As 30 June 2025 approaches, small and medium-sized businesses (SMBs) across Australia should be preparing to close out the financial year with confidence and with a plan. EOFY isn’t just about compliance, it’s a timely opportunity to optimise tax outcomes, secure available government support, and lay a stronger financial foundation for FY26.

But timing is everything. Many support schemes and deductions carry firm cut-off dates, and a missed deadline can mean missed benefits especially when it comes to asset purchases, tax lodgements, or employee training incentives.

Strategic Opportunities Still on the Table – Instant Asset Write-Off (IAWO)

Eligible businesses with annual turnover under $10 million can immediately deduct the full cost of assets priced under $20,000 — provided they are first used or installed ready for use by 30 June 2025.

From a cash flow and planning perspective, the IAWO offers a compelling reason to act now. It allows you to bring forward deductions on multiple qualifying purchases, a smart move if you’re investing in IT upgrades, plant and equipment, or operational tools that support growth or resilience in FY26.

Key Takeaway: Get ahead of supply delays and deployment schedules. To maximise the benefit, ensure all installations and use cases are complete before EOFY — not just the purchase date.

Note: The Government has not extended the temporary $20,000 instant asset write-off beyond 30 June 2025. This means that from 1 July 2025, small businesses will no longer be able to immediately deduct the full cost of eligible assets costing less than $20,000.

Instead, assets over $1,000 will need to be depreciated over time under general small business depreciation rules.This change could impact cash flow and investment decisions, particularly for businesses that regularly purchase equipment or tools under the previous write-off threshold.

The small business commissioner stated that “Small businesses may want to consider how to plan their capital expenditure with no announcements made in relation to the instant asset write-off”.

Federal Budget 2025 – 2026 Updates

Among the Budget initiatives are: 

• Extending energy bill relief – around one million eligible small businesses will receive up to $150 off their bills until the end of 2025, bringing total energy bill relief up to $800 since 2022-23.  
• Buy Australian – the Government has committed to a $20 million “Buy Australian” campaign in 2025-26 to encourage Australians to buy locally-produced goods and services. 
• Mentoring for First Nations businesswomen – $3.4 million over three years to establish a placed-based business coaching and mentoring program for First Nations businesswomen and entrepreneurs. 
• Small business mental health and financial wellbeing – support for small business owners through the NewAccess for Small Business Owners program and Small Business Debt Helpline.  
• Disaster-affected businesses – $693.2 million in co-funding with states to support small businesses and not-for-profits affected by disasters. 
• Energy efficiency grants – assisting businesses with grants of up to $25,000 to manage their energy use and costs and improve their energy efficiency. 
• Extending protections for small businesses – extending Unfair Trading Practice and Unfair Contract Terms protections for small businesses. 

Industry-specific initiatives include: 

• Apprenticeships – a doubling of the current maximum incentive payments for eligible housing construction apprentices from $5,000 to $10,000, aimed at assisting builders and other construction industry firms. 
• Contractor payment times – 20-day payment times for contractors and subcontractors in the construction industry for work completed for Government Business Enterprises undertaking major construction activity. 
• Draught beer excise – pausing indexation on draught beer excise by increasing support available under the existing Excise remission scheme for manufacturers of alcoholic beverages and Wine Equalisation Tax Producer rebate. 
• Fresh produce suppliers – $2.9 million to help suppliers understand and enforce their rights under the Food and Grocery Code of Conduct. 
• Franchising Code of Conduct – $7.1 million over two years for the ACCC to strengthen enforcement of the Franchising Code of Conduct, ensuring more transparent and effective regulatory framework.  

EOFY Preparation Checklist for SMBs

☐ Reconcile accounts and finalise records: Ensure your financial data is complete and accurate. Bank accounts, invoices, payroll, and expenses should all be reconciled.

☐ Review and action technology upgrades: If you’re planning to refresh infrastructure or deploy new systems, act now. The Instant Asset Write-Off applies per asset and strategic upgrades to servers, networking, laptops, or cybersecurity tools could be deductible. Diamond IT can help assess, quote, and implement solutions aligned with your business needs.

☐ Review and action asset purchases: If you’re planning equipment or IT upgrades, bring purchases forward and confirm installation timelines. Don’t leave it too late for the IAWO.

☐ Finalise STP reporting: Check that payroll is up to date and STP data will be finalised by 14 July. This supports accurate employee tax returns and keeps your ATO compliance in good standing.

☐ Pay super on time: To claim the deduction this financial year, ensure super contributions are paid and received by the fund before 30 June.

☐ Prepare early for tax lodgement: Working with a tax agent? Start preparing your records now to avoid last-minute pressure and ensure all claims are maximised.

☐ Book a strategic tax review: EOFY is the ideal time to consult your accountant or advisor — not just to finalise compliance, but to identify proactive tax strategies and take advantage of any remaining support schemes.

How Diamond IT Can Help You Maximise Your EOFY Benefits

EOFY isn’t just about closing the books — it’s a time-sensitive opportunity to lock in financial benefits that could positively impact your cash flow, tax position, and operational readiness. If you haven’t finalised your plans yet, we’re here to help you plan and prioritise IT purchases that align with available government support.

If you want to discuss how your IT investments can align with government incentives, contact us on 1300 307 907 today or fill out the form below.