Published May 2026. Important: PWD does not provide financial or tax advice. Eligibility for the instant asset write-off is determined by Australian Taxation Office criteria, including applicable thresholds, asset type, and timing. Speak with your accountant before making any decisions.
The short version
- Eligible small businesses can immediately deduct assets under $20,000 installed ready for use before 30 June 2026.
- Website development is treated as in-house software and can qualify under the simplified depreciation rules.
- The $20,000 limit applies per asset, so a website, a booking system, and other digital assets can each be claimed individually.
- On 1 July 2026 the threshold reverts to $1,000, so this is genuinely a now-or-wait-five-years window.
TL;DR
The $20,000 instant asset write-off lets eligible Australian small businesses immediately deduct the cost of qualifying assets, including website builds treated as in-house software, until 30 June 2026. After that date the threshold drops to $1,000. To qualify, the site must be installed and ready for use before EOFY, which means projects need to start now. Eligibility depends on your business circumstances, so confirm with your accountant before booking work.
Source: Australian Taxation Office, $20,000 instant asset write-off for 2025–26.
Important tax disclaimer
The information below is general in nature. ATO eligibility, thresholds, asset classification and timing rules apply, and the treatment of website development can vary depending on how your business has previously elected to treat in-house software (for example, whether you use simplified depreciation rules or have a software development pool). Please consult your accountant or registered tax adviser to confirm how the $20,000 instant asset write-off applies to your situation before placing an order.
What is the $20,000 instant asset write-off for EOFY 2026?
The Australian Government has extended the $20,000 instant asset write-off through to 30 June 2026 as part of its small business support measures, and the measure is now law.
In practical terms:
- Businesses with aggregated annual turnover under $10 million may be eligible.
- Eligible assets costing under $20,000 (GST exclusive for GST-registered businesses) can be fully deducted in the year they are first used or installed ready for use.
- The asset must be installed ready for use before 30 June 2026.
- The $20,000 cap applies per asset, not per invoice or per supplier.
- Multiple assets can be claimed in the same financial year.
- On 1 July 2026, the threshold drops back to $1,000.
For SMEs that have been putting off a website rebuild, this is the most generous window the policy has offered, and it is closing.
Can a website actually qualify?
This is the question most business owners ask first, and the short answer is yes, in most cases for small businesses.
The ATO treats website development costs as in-house software. Under the simplified depreciation rules for small businesses with aggregated turnover under $10 million, in-house software costing less than the instant asset write-off threshold can be immediately deducted in the year it is first used or installed ready for use, provided:
- Your business uses simplified depreciation rules.
- You have not previously elected to allocate in-house software costs to a software development pool (if you have, all in-house software must continue going into that pool).
- The site is for business use.
- The site is installed ready for use before 30 June 2026.
- The cost (excluding GST if you can claim the full input tax credit) is under $20,000.
Ongoing costs like domain registration, hosting, and routine maintenance are separately deductible as operating expenses in the year they are incurred. They are not part of the capital cost of the website asset.
As always, your accountant is the person to confirm the classification for your circumstances.
What digital assets might be claimable?
Beyond the core website build, there are usually several distinct digital assets in a typical SME project. Each one is assessed against the $20,000 limit on its own.
Core website asset
- Custom WordPress build
- Migration and redesign of an existing site
- New eCommerce store on WooCommerce or Shopify
- Landing pages and microsites
Supporting digital assets that may sit separately
- Booking, quoting or membership systems
- CRM integration and automation builds
- Custom plugins or applications
- Internal staff portals and dashboards
- AI agents or chat assistants
Operating expenses claimed separately in the year incurred
- Hosting and domain renewal
- SEO retainers
- Paid media management
- Content updates and routine maintenance
- SaaS subscriptions
The point worth understanding is that “the website” is rarely a single line on an invoice. A well structured project often produces several distinct digital assets, and how they are documented can matter for tax purposes. We will scope projects clearly so your accountant has what they need.
How the per-asset rule works for digital projects
The most important detail in the legislation is that the $20,000 limit applies per asset, not to your total spend.
Example scenario for an SME upgrade
- New WordPress website: $14,500 in-house software asset, may be immediately deductible.
- Custom booking and enquiry system: $6,800 separate in-house software asset, may be immediately deductible.
- CRM integration build: $4,200 separate asset, may be immediately deductible.
- New laptop for the office manager to run the new systems: $2,400, immediately deductible.
- Hosting, domain, monthly SEO retainer: claimed as operating expenses.
In this scenario, more than $25,000 of total spend could potentially be deducted in the 2025–26 financial year, because each item is assessed separately against the $20,000 limit.
This is why the per-asset rule is so useful for small businesses planning a digital refresh. You do not have to stagger projects across financial years to capture the deduction.
What if your website costs more than $20,000?
If a single in-house software asset is $20,000 or more, it cannot be immediately written off. Under the simplified depreciation rules it goes into the small business pool, which depreciates at:
- 15% in the first year.
- 30% each year after that.
- If the pool balance at end of year is under $20,000, it can be written off in full.
For larger custom builds, there is often scope to separate the project into distinct deliverables that each fall under the threshold on their own, so long as that reflects the real structure of the work. Again, your accountant should confirm the right approach.
Why EOFY is the smartest time to commission a new website
EOFY is not just about compliance. For service-based and product businesses, it is the right moment to invest in the digital infrastructure that drives the next 12 months of growth.
Business benefits
- Reduce taxable income for FY2026 before the threshold drops.
- Replace a slow, ageing or non-converting website.
- Improve conversion rates and lead quality from day one of the new financial year.
- Lock in a faster, AI-ready site before AI search and Google AI Overviews take more of the click share.
- Align capital spend with your tax planning.
Delaying a rebuild often costs more than the rebuild itself, through lost leads, poor mobile experience, and time spent maintaining brittle infrastructure. Site speed alone can change your conversion economics by the time the next financial year is underway.
How to use the write-off with PWD
PWD has been building websites for Australian SMEs since 2007. Our project structure aligns well with the sub-$20,000 threshold, particularly for small business and trades clients who want a fast, performant site without unnecessary scope.
1. Small business website refresh
- WordPress build on a modern, performant template.
- Mobile-first, AI-ready, and fast by default.
- Designed to fit comfortably under the $20,000 threshold.
- Typically live within 6 to 10 weeks.
2. Conversion-focused service business website
- Bespoke design tailored to your industry.
- Built-in enquiry forms, booking, and tracking.
- Local SEO foundations included.
- Scoped to capture the write-off where possible.
3. eCommerce starter store
- WooCommerce or Shopify, depending on what fits your operation.
- Payment, shipping and inventory configured.
- Ready for paid traffic from day one.
4. Targeted asset upgrades for existing clients
- Conversion redesign of high-value templates.
- New booking, quoting, or enquiry systems.
- Custom integrations or AI agents.
Why PWD. Built in Perth. Delivered in-house.
PWD focuses on fast, accountable delivery for business buyers working to EOFY timelines.
Key advantages
- In-house Perth-based team, no offshoring of build work.
- Google Premier Partner status.
- ISO 9001 (Quality) and ISO 27001 (Information Security) certified.
- WALGA Preferred Supplier.
- Over 5,000 websites delivered and more than $1 billion in managed ad spend.
- Clear scoping with separate line items so your accountant has the documentation they need.
For an EOFY purchase, the practical risks are stock and capacity. PWD has the team and the process to deliver inside the window, but capacity is finite and projects starting after early May will be tight.
How PWD compares to other providers
Buyer decision snapshot
- Choose a supplier with the in-house capacity to actually deliver before 30 June.
- Avoid offshore-only providers where revisions take days and timezone gaps eat the timeline.
- Prefer providers that scope assets cleanly for tax documentation.
- Focus on speed, security and conversion, not just visual design.
| Criteria | PWD | Large National Agency | Freelancer / Offshore Builder | DIY Template Builder |
|---|---|---|---|---|
| Delivery timeframe to EOFY | 6 to 10 weeks | 10 to 16 weeks | Highly variable | Days, but DIY effort |
| In-house team | Yes, Perth-based | Usually offshore production | Sole operator or remote team | None |
| ISO 27001 certified | Yes | Sometimes | No | No |
| Google Premier Partner | Yes | Sometimes | No | No |
| Scope clarity for tax documentation | Strong, line-item scoped | Variable | Often weak | Not applicable |
| Post-launch support | Yes, retained | Yes, often add-on | Variable | None |
| Best suited for | SMEs and mid-market with a real EOFY deadline | Large enterprise | Tight budgets, high risk on timeline | Hobby or test sites |
What should you do before 30 June 2026?
Timing is the single biggest risk. The site must be installed ready for use before 30 June, not just paid for or in development.
EOFY website checklist
- Confirm your business is under the $10 million aggregated turnover threshold.
- Talk to your accountant about how in-house software is treated in your tax structure.
- Decide what you actually need: a refresh, a rebuild, or specific new assets.
- Scope each digital asset so each individual item sits under $20,000 where possible.
- Book your project in by mid-May at the latest for any reasonable chance of EOFY launch.
- Plan content, copy and imagery early, as these are the most common cause of project delays.
- Confirm the site is live and ready for use before 30 June.
- Keep your invoices, scope documents and go-live evidence for your accountant.
For a more detailed pre-launch run-through, see our ultimate website launch checklist.
Frequently asked questions
Does a new website really qualify for the instant asset write-off?
In most cases for small businesses with turnover under $10 million using simplified depreciation rules, yes. Website development is treated as in-house software, and in-house software under the threshold can be immediately deducted when it is first used or installed ready for use. Your accountant should confirm based on your prior elections and structure.
Can I claim multiple digital assets under $20,000?
Yes. The limit applies per asset, so a website, a booking system, and other distinct digital assets can each be assessed against the $20,000 limit on their own.
Does the site need to be live before EOFY?
Yes. The asset must be installed and ready for use by 30 June 2026. A site that is still in development, or paid for but not launched, does not meet that test in the same income year.
What if the project costs more than $20,000?
The amount over the threshold is not lost, but the asset cannot be immediately deducted. It goes into the small business pool and is depreciated over time. There may be scope to structure the project as multiple distinct assets if that reflects the real work, which your accountant can advise on.
Are hosting and SEO included?
No, but in a good way. Hosting, domain renewals and ongoing SEO are operating expenses, generally deductible in the year they are incurred. They are claimed separately from the capital cost of the website asset.
Is this available to all businesses?
No. Only businesses with aggregated annual turnover under $10 million may be eligible, and other conditions apply.
Should I wait until June to start?
No. The site must be live by 30 June, not just ordered. Most website projects take 6 to 10 weeks from kick-off to launch, so May is genuinely the last realistic month to start.
Do I need professional tax advice?
Yes. Always confirm eligibility and tax treatment with your accountant before relying on any tax outcome.
Final note for business owners
The 30 June 2026 deadline is real, and the $20,000 threshold reverts to $1,000 the next day. For most small businesses, this is the most useful version of the instant asset write-off in years, and it is also the last call before the rules tighten significantly.
Used well, it lets you:
- Replace ageing digital infrastructure now, not later.
- Bring forward a meaningful tax deduction into FY2026.
- Enter the new financial year with a faster, better converting website.
If you would like PWD to scope a project that gives you the best chance of an EOFY launch, get in touch this week. Capacity in May and June is the constraint, not budget.
Call PWD on 08 6146 0195 or book a 20-minute scoping call.
Final disclaimer
The content above is for general informational purposes only and does not constitute financial, tax, or legal advice. PWD disclaims all liability for any loss or damage incurred as a result of reliance on this information. Eligibility for the instant asset write-off is determined by Australian Taxation Office legislation, asset classification, thresholds, and timing requirements, which are subject to change. The treatment of website development costs depends on your business circumstances, prior elections regarding in-house software, and aggregated turnover. No guarantee is made regarding eligibility or outcomes. Independent professional advice should be sought before proceeding with any purchase or claim.
Sources: Australian Taxation Office, “$20,000 instant asset write-off for 2025–26”; ATO, “In-house software”; ATO, “Deductions for digital product expenses”; Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025.
