Proposed Extension of the Instant Asset Write-Off: Is This Tax Break Still Worth Its Weight in Gold?
A new Bill currently before Parliament could deliver another year of tax relief for small businesses. The proposal centres on extending the $20,000 instant asset write-off for an additional 12 months, through to 30 June 2026.
This measure is included in the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025. Importantly, it has not yet passed Parliament and is not law at the time of writing. Still, for business owners thinking ahead, this proposal could represent a valuable opportunity. Like unrefined gold, its value depends on timing, planning, and correct execution.
Key Takeaways
The Government has proposed extending the $20,000 instant asset write-off to 30 June 2026.
The extension is not yet law and remains subject to Parliamentary approval.
Eligible businesses must have aggregated turnover under $10 million.
The $20,000 limit applies per asset, excluding GST.
Assets must be installed and ready for use by the relevant deadline.
Planning early helps avoid missing out if the proposal becomes law.
What Is the Instant Asset Write-Off?
The instant asset write-off allows eligible small businesses to immediately deduct the cost of certain assets. Normally, assets are depreciated over several years.
Under the current proposal, businesses with aggregated annual turnover under $10 million may:
Immediately deduct eligible assets costing less than $20,000 per asset, excluding GST.
Claim multiple assets, provided each item is under the threshold.
This concession is designed to simplify depreciation and support business cash flow.
What Has Been Proposed to Change?
If the Bill becomes law, the $20,000 instant asset write-off would apply to assets that are:
Purchased between 1 July 2025 and 30 June 2026, and
First used or installed ready for use by 30 June 2026.
Until legislation passes, the current law only applies to assets installed and ready for use by 30 June 2025. This distinction is critical and should not be overlooked.
Why Cash Flow Is the Real Prize
Cash flow remains one of the biggest challenges for Australian small businesses. Accelerating deductions can ease pressure when expenses are rising.
By claiming an immediate deduction, businesses may reduce taxable income sooner. That can free up cash for reinvestment, debt reduction, or operating costs.
However, the benefit only applies if your business has taxable income to offset. If a business is running at a loss, the cash-flow advantage may be limited.
Gold only shines when it is properly refined.
What Assets May Qualify?
Eligible assets typically include:
Tools and equipment
Machinery
Computers and technology
Furniture and fittings
However, not all assets qualify. Some exclusions apply, including:
Assets leased out to others
Certain capital works
Horticultural plants
Assets allocated to specific depreciation pools
Motor vehicles may also be subject to separate car limit rules, even if the purchase price is under $20,000.
Professional advice is essential before committing to large purchases.
Timing Matters More Than Ever
Supply delays, installation lead times, and availability issues remain common. Waiting until legislation passes may leave insufficient time to act.
Planning now allows you to:
Budget effectively
Confirm asset eligibility
Ensure delivery and installation deadlines can be met
If the proposal becomes law, being prepared could mean the difference between striking gold and missing out.
A Practical Example
A café owner plans to purchase a commercial fridge costing $18,500. If the proposed extension becomes law and the fridge is installed by 30 June 2026, the full cost may be deductible.
Instead of spreading deductions over several years, the tax benefit is realised immediately. That saving could be redirected toward staffing, marketing, or rising supplier costs.
Common Pitfalls to Avoid
Even generous tax concessions come with risks. Common mistakes include:
Assuming the extension is already law
Missing installation deadlines
Ignoring asset exclusions
Overestimating tax savings without considering taxable income
Careful planning turns opportunity into outcome.
Turning a Proposal into a Strategic Advantage
The proposed extension of the instant asset write-off could be a powerful tool for small businesses. But like any valuable resource, it must be handled with care.
The real value lies not in rushing to buy assets, but in strategic, informed decision-making.
Ready to Plan with Confidence?
If you are considering equipment or technology upgrades, now is the time to seek advice. We can help you assess eligibility, timing, and cash-flow impact before you commit.
Contact DJ Grigg Financial today to ensure this proposed extension works for your business. Let’s turn tax uncertainty into a well-polished result.
Business Success: Take Control of Your Spending Without the Stress
Business success is not just about sales growth. It is about controlling what leaves your bank account.
Many Australian businesses are profitable on paper, yet still feel cash-poor. The cause is often unmanaged spending, not lack of revenue.
According to the ATO, effective cash flow management requires close control of both income and expenses. Without this balance, even strong businesses can struggle to meet obligations.
Think of your spending like unrefined gold ore. Until you remove waste and impurities, its true value stays hidden.
Refine Your Costs. Protect Your Cash. Strengthen Your Gold.
Key Takeaways:
Spending discipline protects cash flow and profitability.
Small expense leaks add up faster than most owners expect.
Supplier reviews and negotiations uncover hidden savings.
Cash flow forecasting prevents problems before they occur.
Systems and technology create clarity without daily stress.
Why Spending Control Is a Business Survival Skill
The Australian Bureau of Statistics continues to report rising input costs for small businesses. Rent, wages, software, and supplier pricing pressures are squeezing margins.
The ATO advises businesses to actively monitor expenses to ensure they can meet tax and supplier obligations. Spending that is not tracked or planned creates unnecessary risk.
Cash flow stress rarely arrives suddenly. It builds quietly through small, repeated decisions.
Refining spending restores confidence and control.
Step One: Forecast Cash Flow Before Cutting Costs
Before reducing expenses, you need visibility.
The ATO strongly recommends preparing a cash flow forecast or budget. This helps you anticipate upcoming expenses, tax payments, and seasonal fluctuations.
A simple forecast answers key questions:
When does money come in?
When does it go out?
Where are the pressure points?
Forecasting turns guesswork into strategy. It allows you to act early, not react late.
Step Two: Review Suppliers With Fresh Eyes
Long-term supplier relationships feel safe. But safety can become costly if pricing is never reviewed.
Markets change. New suppliers emerge. Payment terms evolve.
Business.gov.au recommends reviewing supplier arrangements to improve cash flow. Better pricing or longer terms can significantly ease pressure.
Focus on value, not just price:
Competitive rates
Reliable delivery
Flexible payment terms
Refining suppliers polishes your cost base.
Step Three: Negotiate for Value, Not Conflict
Negotiation is not confrontation. It is good business.
Research published in Harvard Business Review shows suppliers prefer negotiation over losing reliable customers. Long-term clients reduce risk and provide predictable revenue.
Consider negotiating:
Volume discounts
Loyalty pricing
Extended payment terms
Bundled services
Even small improvements compound over time. That is how savings turn into stronger margins.
Step Four: Rein in Everyday Expenses
The ATO stresses that expenses must be necessary and business-related to be deductible. Yet many businesses pay for items that no longer deliver value.
Common cost leaks include:
Unused subscriptions
Excess stock
Duplicate software
Uncontrolled staff spending
Conduct quarterly expense reviews. Ask whether each cost still earns its place.
Cutting waste is precision work, not punishment. Gold businesses stay lean by choice.
Step Five: Use Purchase Orders for Spending Discipline
While not an ATO requirement, purchase order systems are a recognised business control tool.
A purchase order:
Pre-approves spending
Allocates budget upfront
Improves invoice matching
This prevents surprise bills and reactive decisions.
Business Success Without the Stress: Budget and Manage Cash Flow Like Gold
Running a business should feel rewarding, not relentless. Yet for many owners, cash flow stress overshadows success.
Late payments, rising costs, and surprise tax bills can turn growth into anxiety. The solution is not working harder. It is building financial control that works for you.
With the right budgets, forecasts, and systems, your cash flow can feel solid, stable, and stress-free.
Key Takeaways
A budget plans income and expenses
A cash flow forecast tracks timing of money in and out
Cash flow problems are often about timing, not profit
Including tax obligations avoids nasty surprises
Regular reviews turn financial stress into confidence
Why Budgeting Is the Gold Foundation of Business Success
A budget is your financial blueprint. It shows where money should go and how resources are allocated.
Without a budget, decisions rely on gut feel. With one, decisions are grounded in clarity.
The Australian Taxation Office explains that managing cash flow starts with understanding expected income and expenses. They emphasise that a budget is essential, but it must be reviewed regularly.
Think of budgeting like laying a gold foundation. Strong foundations support growth. Weak ones crack under pressure.
Budget vs Cash Flow Forecast: Know the Difference
Many businesses confuse budgets with cash flow forecasts. They are related, but not the same.
A budget estimates income and expenses over time
A cash flow forecast shows when cash actually enters and leaves your bank account
You can be profitable on paper and still run out of cash. That is why forecasting timing is critical.
The ATO recommends using a cash flow budget or projection to identify future shortfalls early. This allows action before stress sets in.
Gold-level control comes from using both tools together.
Understand Your True Costs Before You Commit
Starting projects without knowing full costs is risky. It is like mining without surveying the ground.
List every cost from start to finish:
Wages and contractor costs
Materials and suppliers
Overheads and fixed expenses
Software, equipment, and subscriptions
Do not forget compliance costs:
GST payments
PAYG withholding
Superannuation
Income tax instalments
The ATO specifically advises including tax obligations in cash flow planning. Ignoring them creates artificial confidence and real problems later.
Build a Budget That Can Handle Reality
Once costs are clear, build a realistic budget. Then add contingencies.
Contingencies protect you when:
Projects overrun
Supplier prices rise
Staffing needs increase
Budgets should guide decisions, not restrict them. A flexible budget absorbs shocks without breaking.
Cloud accounting software makes this easier than ever. Budgets can be tracked in real time, not after the damage is done.
That visibility is financial gold.
Manage Cash Flow by Managing Timing
Cash flow is about when money moves, not just how much.
The ATO defines cash flow as the money coming in and going out of your business. Problems arise when outflows arrive before inflows.
Cyber Security: Safeguarding Financial Data in a Digital Age
Today’s digital world has turned business data into modern-day gold. Protecting that gold isn’t just an IT task — it’s a business survival strategy. With cyber attacks increasing across Australia, no business can afford weak defences.
Below is your government-aligned guide to understanding cyber risks and protecting your most valuable digital assets.
Key Takeaways
Human error is a major cause of cyber incidents, making staff training essential.
Small businesses lose an average of $49,600 per cybercrime report (ATO / ACSC data).
Outdated systems and skipped updates are leading security vulnerabilities.
Cyber security requires visibility — you must monitor systems proactively.
A Cyber Incident Response Plan (CIRP) is essential for fast recovery.
Cyber attacks continue to grow in frequency and sophistication. According to the Australian Cyber Security Centre (ACSC), cybercrime reports increased again in 2023–24, with the average cost to small businesses reaching $46,000–$49,600 per incident.
Attackers target financial data, customer records, and confidential business information, which have become high-value commodities on the dark web. Professional service firms — including accounting practices — are especially attractive targets because they hold significant amounts of sensitive financial data.
The ACSC emphasises that cyber security is now “a business risk, not simply a technical issue” — meaning leaders at all levels must take responsibility for protecting their organisation. Source: ACSC Small Business Cyber Security Guide
People: The Most Common Entry Point for Cyber Attacks
More than half of cyber incidents stem from human error, according to global studies referenced by ACSC. This includes clicking phishing links, downloading malicious attachments, and falling for impersonation scams.
Technology and Updates: Don’t Let Old Systems Create New Risks
Outdated software and unsupported devices leave easy openings for attackers. The ASD’s Essential Eight mitigation strategies list patching applications and operating systems as top defences.
Critical vulnerabilities should be patched as soon as possible — ideally within 48 hours. Other updates should follow a risk-based schedule, depending on how critical the system or device is.
Microsoft Windows 10 reaching End of Life means devices running it no longer receive security updates. Without patches, they quickly become vulnerable to new exploits — making upgrade planning essential.
Skipping updates may seem like a small inconvenience, but in cyber terms it’s like leaving the vault door half open.
Monitoring and Visibility: Because You Can’t Protect What You Can’t See
The ACSC highlights system monitoring as a key protective measure. Without logging, alerts, and visibility, businesses may not detect suspicious activity early enough to limit damage.
Examples of what monitoring helps detect:
login attempts from unusual locations
repeated password failures
unexpected system changes
installation of unauthorised software
Real-time alerts help identify intrusions sooner and prevent long-term unauthorised access.
Build a Strong Cyber Incident Response Plan (CIRP)
A CIRP outlines exactly what steps your business will take when a cyber incident occurs. The ACSC encourages businesses to have an “emergency plan” for cyber events.
Your plan should include:
roles and responsibilities
communication procedures
incident categorisation and escalation
data handling and evidence collection
recovery steps and notifications
A well-practised CIRP helps your team stay calm, act quickly, and reduce damage.
Practical, Government-Aligned Steps to Improve Your Cyber Security
1. Use Strong Passwords or Passphrases + Multi-Factor Authentication (MFA)
ACSC recommends using “long, complex, unique passphrases” and enabling MFA wherever possible.
2. Train Staff Regularly
Staff need ongoing development — not one-off training — to stay alert to phishing, payment fraud and scams.
3. Update and Replace Outdated Systems
Apply critical patches ASAP and schedule routine updates based on risk. Replace unsupported hardware and operating systems.
4. Use Security Software and Network Protections
Firewalls, antivirus tools, email filtering and encryption remain essential controls.
5. Back Up Critical Data
Follow the ACSC “3-2-1 rule”:
3 copies
2 storage types
1 offsite copy
6. Complete the Government Cyber Security Health Check
Cyber security has become a core business capability. Strong training, secure technology, and a clear response plan protect your reputation, financial security, and customer trust.
Your business’s data is its gold — and it deserves the highest level of protection.
Ready to Secure Your Business? We Can Help.
If you want support assessing your cyber risks, strengthening your systems, or developing a tailored cyber resilience plan, contact us today. We’ll help you safeguard your digital assets and protect your business in a high-risk online world.
Tax Deductions for Medical Bills: Sorting Real Gold from the Glitter
Medical bills can feel like they drain your bank balance faster than gold dust slips through your fingers. For many Australians—especially those dealing with illness, disability, or early retirement—those bills can be overwhelming. So it’s natural to wonder: Are medical expenses tax deductible?
A recent tribunal case shows the answer is often far less golden than many hope. While the tax system supports many kinds of deductions, medical bills sit in a category the ATO guards tightly.
Let’s break down what the rules really say, what the Wannberg case teaches us, and how to stay on the right side of the law.
Key Takeaways
Medical treatments are not tax deductible in Australia because they are considered private expenses.
To qualify for a deduction, a cost must directly help produce assessable income under section 8-1 ITAA 1997.
Disability pensions and TPD income streams do not create a tax-deductible link to medical expenses.
Only compulsory medical assessments, required for current employment, may be deductible.
Consider rebates such as the private health insurance rebate or Medicare levy exemptions, since no medical expense offset exists.
Always seek professional advice before assuming any health-related cost is deductible.
The Wannberg Case: A Reality Check
In Wannberg v Commissioner of Taxation [2025] ARTA 1561, the Administrative Review Tribunal (ART) made one point very clear: medical treatment expenses remain private and non-deductible, even in cases of significant hardship.
The taxpayer had retired early due to severe mental and physical health conditions and relied solely on a Total and Permanent Disability (TPD) pension from his super fund. He spent close to $100,000 on psychotherapy, residential treatment programs, and dental work—costs he believed were essential to managing the very conditions that led to his TPD income.
He argued these expenses should be deductible because they were directly tied to the disability that triggered his pension.
But the tribunal disagreed.
The Missing Nexus
Under section 8-1 of the Income Tax Assessment Act 1997, an expense is deductible only if it is incurred in gaining or producing assessable income and is not private.
The ART found no clear connection—known as the nexus test—between the medical costs and the pension income. The pension was paid because of the disability, not because the expenses helped produce it.
As Cordner Advisory summarised in its commentary on the case: “Medical treatment, even where linked to a disability that triggers a pension, remains private and not deductible.”
The treatments helped the taxpayer manage his condition, but they did not generate the pension. That distinction mattered.
Why Most Medical Bills Aren’t Deductible
The ATO is very clear: most medical, dental, therapy, optical, and psychological treatment expenses cannot be claimed as deductions.
According to the ATO:“You can’t claim a deduction for medical or dental expenses because they are non-deductible expenses.”
This includes:
GP visits
Psychologists and psychiatrists
Hospital fees
Dental work
Treatment programs or therapy
Medical aids and appliances
And importantly, the old Net Medical Expenses Tax Offset was abolished after 30 June 2019, meaning no offsets or deductions apply to general medical costs anymore.
The Only Exception: Compulsory Medical Assessments
While medical treatment expenses are non-deductible, the ATO does allow deductions for mandatory medical assessments required to perform your current job.
Examples include:
A fitness-to-drive examination for commercial drivers
Employer-required health checks for specific roles
Some mandatory COVID-19 tests required by a workplace
This exception is narrow. It applies only when the medical assessment is a condition of doing your job—not when it relates to treatment, ongoing care, or general health.
Medical treatment expenses—no matter how necessary—are simply not deductible.
2. Know what may be deductible
Only compulsory assessments required right now for your job may qualify.
3. Your pension type doesn’t create deductibility
Disability pensions, TPD income streams, and super pensions do not create a deductible link to medical treatment.
4. Plan your finances with this in mind
Since medical costs are non-deductible, factor them into your budgeting.
You may still benefit from:
the private health insurance rebate
a Medicare levy reduction or exemption (if eligible)
But medical treatment bills themselves won’t be offset through your tax return.
5. Seek advice before committing to large costs
When in doubt, speak with a tax professional or obtain a private ruling from the ATO.
Turning Tax Confusion Into Golden Clarity
The tax law draws a firm boundary between income generation and personal wellbeing. Even where medical treatment is essential, compassionate, or life-changing, it still falls on the non-deductible side of that line.
If you’re unsure whether a medical or health-related cost may be deductible, don’t rely on guesswork. Talk to DJ Grigg Financial. We’ll help you avoid costly mistakes, understand the rules, and uncover the deductions that are available—so you can focus on your health while we take care of the tax.
