In this episode
What Exactly Is the $20K Instant-Asset Write-Off? | ft. David Rosenthal
- What qualifies as an “instant asset” and what doesn’t
- Why timing is everything when it comes to asset purchases
- Common myths around the write-off—and how they could cost you
- Why you might want to delay that purchase until the next financial year
- How to maximize tax savings without wrecking your cash flow
Ever wondered if buying that new van or set of tools before tax time is actually worth it?
In this episode of The Site Shed, Matt Jones is joined again by accountant David Rosenthal to break down the ins and outs of the $20,000 Instant Asset Write-Off—a federal initiative that’s widely misunderstood but potentially game-changing for trade business owners.
Whether you’re thinking of upgrading your gear or trying to reduce your tax bill, this episode is a must-listen.
Key Takeaways
The episode kicked off with Alex Duta sharing his journey from hustling as a tradie to becoming a leader in the restoration industry. Starting a restoration business in Chicago with his dad, Alex talked about growing their company from the ground up. They had one simple goal: get profitable by focusing on one main thing.
For tradies, this means getting clear on what you do best—whether it’s water damage repairs, mould remediation, or fire restoration—and becoming the go-to expert in that area. Alex highlighted that many businesses fail because they try to offer too many services from the start. By sticking to one, you master the processes and develop a strong reputation, making it easier to scale later.
The Power of Staying Focused in Your Restoration Business
- It’s not a cash rebate: The write-off reduces your taxable profit, not your bank balance.
- Per-asset limit: Each eligible item must be under $20,000 (ex-GST), not just the first $20K of a bigger purchase.
- Secondhand gear counts: That used ute or power tool still qualifies—if it’s under the cap and used for business.
- Timing is crucial: Assets must be installed and ready for use before 30 June to claim in that year.
- It doesn’t always make sense: If your income is low this year, you may not see the tax benefit now—consider waiting.
Who Should Listen?
- Business owners considering buying vehicles, equipment, or tools
- Tradies looking to reduce tax liabilities before EOFY
- Anyone confused about how the write-off really works
- People dealing with brokers or planning asset purchases pre-June 30
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