Instant Asset Write-Off EOFY 2025 Australia

The End of Financial Year (EOFY) isn't just a deadline for accounting; it's a golden opportunity for your business to significantly reduce the cost of technology investments, thanks to the Australian government's Instant Asset Write-Off policy. Crucially, high-quality networking equipment like Cisco switches, routers, or Meraki cloud-managed solutions are all eligible for tax deductions in the 2025 financial year.

This article from Prology will help you understand how this policy works and how to effectively apply it, maximizing the financial benefits for your business.

1. What is Instant Asset Write-Off?

The Instant Asset Write-Off is a special tax incentive policy by the Australian government. It allows businesses to deduct the full cost of eligible assets in the same financial year they are purchased and put into use. This is a significant departure from the previous method of depreciating asset costs over several years, providing immediate tax relief for businesses.

2. Who is eligible for this deduction?

This policy applies to businesses that meet the following criteria:

• Businesses with an aggregated turnover of less than AUD$10 million: This commonly covers many small and medium-sized businesses in Australia.
• Assets purchased and ready for use by June 30, 2025: This is a critical deadline you must meet to claim the deduction in the current financial year.
• Assets with a value below the threshold set by the ATO at the time of purchase: This threshold can change, and Prology can provide specific advice to ensure your chosen equipment qualifies.

3. Which network equipment qualifies?

Most tangible depreciating assets used for business operations are eligible for the write-off. For network equipment, you can consider these options:

4. Practical Example of Benefits

Let's look at a concrete example to visualize the financial benefits you could receive:

Suppose your business purchases a Cisco switch and router combo valued at AUD$9,500. With a small business tax rate of 25%:

• You can deduct the entire AUD$9,500 equipment cost.
• The tax savings will be: AUD$9,500 x 25% = AUD$2,375.

This means you invest in new equipment, but effectively get back nearly a quarter of the cost through reduced tax liability. It's an excellent opportunity to upgrade your technology infrastructure while optimizing costs.

5. How Prology supports businesses to leverage EOFY

Prology is committed to helping your business make the most of the Instant Asset Write-Off policy:

• Consultation on eligible equipment: We'll help you select the right Cisco and Meraki networking gear that qualifies for the tax deduction.
• Fast quotes, on-time invoicing: Ensuring your transactions are completed promptly before the June 30, 2025, deadline.
• Configuration and deployment support: Prology's technical team is ready to help you get your equipment up and running before the deadline, meeting the policy's requirements.
• Guaranteed stock and timely delivery: We understand the urgency of the EOFY deadline and will ensure your equipment reaches you quickly.

Order your networking equipment from Prology today to ensure you meet the EOFY 2025 tax deduction deadline.

Contact our consulting team for support in choosing the right solutions and turning your technology investment into savings