For small business retailers who have been putting off a technology upgrade, the instant asset write-off is a practical reason to act now rather than later.
Here is what you need to know, and how to make it work for your retail business.
What the Instant Asset Write-Off Is
The Australian Government’s small business instant asset write-off allows eligible businesses to immediately deduct the full cost of a qualifying asset in the year it is purchased and first used — rather than depreciating it over several years. This means the tax benefit lands in your current financial year return rather than being spread across three, five, or more years.
For a retail business buying point-of-sale hardware — terminals, scanners, receipt printers, cash drawers, tablets — this is a straightforward category of qualifying asset. You buy the hardware, you put it to use in your business, and you claim the full deduction this financial year.
The Numbers Matter
The write-off has threshold and eligibility conditions that change periodically. As of the current financial year, consult your accountant to confirm the exact threshold applicable to your business and turnover. What does not change is the underlying principle: spending money on business assets before 30 June produces a tax benefit now. Waiting until July means waiting another twelve months.
For a retailer on a 25% small business tax rate, a $5,000 hardware investment produces a $1,250 tax saving in this year’s return. The effective cost of that upgrade is $3,750, not $5,000. For a larger hardware package, the saving scales accordingly.
Always confirm your specific position with your accountant before purchasing. Eligibility conditions apply and individual circumstances vary.
What to Upgrade
Point-of-sale hardware has a direct bearing on how your business operates daily. Slow, ageing terminals create friction at the counter. Unreliable scanners slow down stocktakes and receiving. Inadequate receipt or label printing hardware creates manual workarounds that cost staff time.
The areas most worth considering for an EOFY upgrade are:
- POS terminals and touchscreens
- Barcode scanners — both fixed counter units and portable devices for stocktaking
- Receipt printers
- Label printers for shelf-edge and product labelling
- Cash drawers
- Customer-facing display screens
- Tablets for mobile POS and stocktaking on the shop floor
Any of these qualify as business assets used in the operation of your retail business.
The Tower Systems Hardware Store
Tower Systems supplies POS hardware direct to retailers through its online store. The range is selected to work with Tower Systems software and is priced for independent small business retailers — not enterprise buyers.
Right now, Tower Systems customers can access a bonus 10% discount on hardware purchases. Combined with the instant asset write-off, the effective cost of upgrading your technology this quarter is meaningfully lower than it will be in July.
Buying before 30 June captures both the tax deduction in this financial year and the current discount. Waiting until July loses both.
Act Before 30 June
The combination of the instant asset write-off and the current 10% customer discount makes this quarter the right time to upgrade. The process is straightforward: purchase the hardware, put it to use in your business before 30 June, and discuss the deduction with your accountant when preparing your return.
To browse the Tower Systems hardware range and take advantage of the current customer discount, visit our online store.
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