Need new equipment but not the new-equipment price tag? For many Australian small businesses, buying second-hand through an auction can cut the upfront cost and the tax bill in the same financial year.
The instant asset write-off lets eligible small businesses deduct the full cost of a qualifying asset in the year it’s first used or installed ready for use, instead of depreciating it over several years. Three points matter for buyers:
The $20,000 threshold applies for 2025–26, and the Government has announced it will be made permanent from 1 July 2026. Check the ATO’s latest guidance before you buy.
A $60,000 machine bought new could be a single large purchase. The same capability bought as several used assets, each under $20,000, may be written off in full. Auctions often offer exactly that kind of stock: tools, workshop equipment, packing and handling gear, commercial fit-out and more.
Auctions also give you a transparent price set by the market, in place of a dealer margin. That helps when you’re managing cash flow.
Assets costing $20,000 or more aren’t lost to you. They can go into the small business simplified depreciation pool, at 15% in the first year and 30% each year after.
Hilco APAC runs sales across industries including engineering and manufacturing, civil construction and transport and logistics. Browse live and upcoming sales, read our buying FAQs, or register to bid.
Have equipment to sell instead? Learn how we can help you sell with Hilco.
This article is general information only and isn’t tax advice. Speak to your accountant about your circumstances.
Have an excess, obsolete or returned stock challenge? Talk to us.
Rochelle has forged a career as a Retail inventory specialist over 18 years across auctions, marketplaces, eCommerce and Retail, locally and internationally. Having worked for both high growth start-ups and Australia’s largest retail corporations, Rochelle has seen the myriad of challenges faced by Retailers in complex inventory environments.
As Director, Wholesale at Hilco Global, Rochelle translates this expertise in buying, sourcing and trading, offering clients strategies that can be deployed immediately in solving inventory challenges at scale.
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