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Use the Instant Asset Write-Off Before 30 June — and Get Your Vehicle Financed in Time
If you’re a self-employed Australian with an ABN, the instant asset write-off is one of the most powerful tax deductions available to you. Buy an eligible work vehicle before 30 June 2026, and you can claim the cost as an immediate tax deduction — instead of depreciating it over several years.
The catch? The vehicle must be purchased and ready for use before 30 June. With finance approval taking 24 hours and settlement within 2–3 business days at CarFund, you still have time — but it gets tighter each week.
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What is the instant asset write-off?
The instant asset write-off (IAWO) lets eligible small businesses claim an immediate full deduction for the business portion of an asset — including a car, ute, van, or light truck — in the year it is first used or installed ready for use.
The current threshold is $20,000 per asset, available to businesses with aggregated turnover under $10 million. The threshold applies per asset, so you can write off multiple eligible assets that each cost less than $20,000.
For passenger vehicles, the deduction is capped at the car limit ($69,674 for 2025–26), and only the business-use percentage is deductible.
Important: Tax law changes regularly. Always confirm the current threshold, eligibility, and car limit with your accountant or the ATO before buying. This article is general information only.
Why finance a vehicle for the write-off instead of paying cash?
You might think paying cash is the only way to claim the deduction — but it isn’t.
When you finance a vehicle through a chattel mortgage, you own the vehicle from day one. Your name is on the rego at settlement. For tax purposes, you are treated as having purchased the asset outright — which means you qualify for the instant asset write-off (subject to ATO rules) and can claim the GST back on your next BAS.
The benefit of financing rather than paying cash:
- Keep your working capital. Don’t drain your bank account before EOFY.
- Lock in the deduction now. Claim the tax benefit this financial year, even though you’re paying off the vehicle over several years.
- Match repayments to cash flow. Use a balloon payment to keep monthly repayments low.
- Claim GST back fast. Get the GST refund on the full purchase price within weeks of settlement.
This is exactly why most tradies, sole traders, couriers, real estate agents, and small business owners use a chattel mortgage instead of cash for EOFY purchases.
Vehicles eligible for the instant asset write-off
The IAWO can apply to vehicles that are used predominantly for business — but the rules differ depending on the vehicle type:
| Vehicle type | Threshold cap | Notes |
|---|---|---|
| Cars (passenger) under car limit | $20,000 instant write-off, then depreciation up to car limit | Includes most SUVs, sedans, hatchbacks |
| Utes & light commercial vehicles (>1 tonne payload) | $20,000 instant, balance depreciated | HiLux, Ranger, D-Max, Triton — not capped at car limit |
| Vans (commercial) | $20,000 instant, balance depreciated | Sprinter, Transit, HiAce, Crafter |
| Light trucks under 4.5t GVM | $20,000 instant, balance depreciated | Many tradie tippers and box trucks |
The ATO favours commercial vehicles — utes with >1 tonne payload and vans designed for commercial use generally qualify for fuller deductions than passenger cars. Check the payload rating before you buy.
How fast can CarFund settle a vehicle before 30 June?
If you’re reading this in May or early June, you still have time — but the closer you get to 30 June, the higher the risk of dealer or registration delays.
CarFund’s typical EOFY timeline:
- Day 1: Free quote and pre-approval (zero paperwork for property owners — up to $250,000)
- Day 1–2: Vehicle quote from dealer or private seller
- Day 2–3: Finance approval issued (no tax returns required)
- Day 3–5: Documentation signed and settlement to dealer
- Day 5–7: Vehicle ready for collection and on the road
That’s roughly a week from quote to driving the vehicle home. For 30 June settlement, we recommend starting the process no later than mid-June.
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Who qualifies for CarFund’s no-tax-returns finance?
Most self-employed Australians qualify. The basic eligibility:
- You hold an active ABN
- You’ve been trading for at least 12 months (24 months ideal)
- You’re registered for GST (preferred but not always required)
- You’re an Australian citizen or permanent resident
- You own residential property OR can show consistent business activity
For loans under $150,000, we don’t need:
- Tax returns
- BAS statements
- Profit and loss statements
- Bank statements (in most cases)
Property owners often qualify with just a driver’s licence and an ABN.
Common EOFY scenarios where the IAWO works
Scenario 1 — Tradie buying a ute Mick, an electrician, buys a $58,000 HiLux on 25 June. Because it’s a 1-tonne ute used 100% for business, he claims a $20,000 instant write-off and depreciates the balance. He keeps $58,000 in his offset account by financing through chattel mortgage and claims back $5,272 GST on his next BAS.
Scenario 2 — Real estate agent buying a passenger car Sarah, a real estate agent, buys a $45,000 SUV used 80% for work. The $20,000 IAWO applies to 80% of the asset value — she claims $16,000 immediately and depreciates the rest within the car limit.
Scenario 3 — Courier buying a van Dimitri buys a $52,000 Sprinter cargo van for his courier business. Because it’s a commercial vehicle over 1-tonne payload, he claims the IAWO on the first $20,000 and accelerates depreciation on the balance.
Always check with your accountant — the calculations depend on your specific business use, turnover, and the asset’s classification.
FAQs
Can I use the instant asset write-off if I finance the vehicle? Yes — provided you finance under a structure where you own the asset (e.g. chattel mortgage). Operating leases generally don’t qualify because the lessor owns the asset.
Does the vehicle need to be new? No. Used vehicles also qualify, provided they meet the threshold and the business-use rules.
What if I buy on 29 June but it doesn’t arrive until 5 July? The asset must be first used or installed ready for use by 30 June. If it’s still sitting at the dealer waiting for delivery on 30 June, it generally won’t qualify for that financial year.
Is the threshold definitely $20,000? The IAWO threshold is set by Federal Budget and has changed several times. Check the current figure with your accountant or the ATO before relying on it.
Can I finance multiple vehicles in the same year? Yes — the threshold applies per asset. If you buy three eligible utes each under $20,000, you can write off all three.
Get pre-approved for EOFY before time runs out
You don’t need a vehicle quote to start. CarFund can issue pre-approval up to $250,000 based on your ABN and property ownership — so you can walk into any dealer with finance already locked in.
Time-to-EOFY: every week you wait is a week less to settle. Start now.
[GET A FREE EOFY QUOTE] [CALL 1800 199 302]
CarFund Pty Ltd — 20+ years arranging finance for self-employed Australians. Macquarie Bank and Capital Finance accredited.