TaxBot is an AI-powered tax and expense app for everyone — from individuals wanting a bigger tax refund to sole traders, freelancers and small businesses in Australia and the United States. You scan a receipt or upload a bank statement, and TaxBot's AI categorises each transaction, finds the deductions you're entitled to, tracks GST/BAS, and estimates your tax in real time.

How does TaxBot help me save on tax?

TaxBot reads your receipts and bank statements and uses AI to identify every work-related expense you can legally claim — matched to your occupation — including items people commonly miss like subscriptions, tools, phone, vehicle and depreciation. Claiming more legitimate deductions lowers your taxable income, so you keep more of what you earn.

Does TaxBot handle GST and BAS in Australia?

Yes. TaxBot tracks GST collected and paid, breaks it down by BAS quarter and full financial year (1 July – 30 June), and gives you a clear net-GST figure to help you prepare your Business Activity Statement.

TaxBot is for anyone who wants to pay less tax and keep better records — everyday individuals and employees claiming work-related deductions, as well as sole traders, freelancers, contractors, gig and rideshare drivers, tradies and small business owners. If you have expenses you can claim, TaxBot helps you find and track them without an accountant doing everything manually.

Yes — you can start free with no credit card. The free Starter plan includes essential tools and a monthly allowance of AI actions. Paid plans (from $14.99/month AUD) add unlimited receipts, more AI, and extra modules like invoicing, mileage and depreciation.

Can TaxBot turn my bank statement into deductions?

Yes. Upload a PDF or image of your bank statement and TaxBot's AI extracts every transaction, detects the financial year automatically, flags likely business deductions based on your occupation, and lets you save them to your records in one step.

Small Business Instant Asset Write-Off: A $20K Game Changer

How smart business owners are using the instant asset write-off to upgrade equipment and slash their tax bill

Maria had been staring at her espresso machine for months. The ten-year-old workhorse was showing its age: inconsistent temperature, frequent breakdowns, and queues of frustrated customers during the morning rush. She knew she needed to replace it, but the $18,000 price tag for a commercial-grade machine felt like a mountain to climb.

Then her accountant mentioned four words that changed everything: "instant asset write-off."

"I did not realise I could claim the whole cost in one year," Maria says, standing proudly next to her gleaming new machine at Southbank Brews in Melbourne. "I thought I would have to depreciate it over years and years. But my accountant showed me I could get nearly $6,500 back at tax time. That made the decision easy."

Maria is one of thousands of Australian small business owners taking advantage of the instant asset write-off before it ends on June 30, 2026. In this article, we will show you exactly how this powerful tax incentive works, who qualifies, and how to make the most of it before time runs out.

The Problem: Cash Flow Crunch Kills Business Growth

Every small business owner knows the feeling. You need new equipment, better technology, or upgraded tools, but the upfront cost is daunting. Traditional depreciation meant spreading the tax benefit over years, sometimes five, seven, or even more. That did nothing to help your cash flow today.

The result? Businesses limped along with outdated equipment. Productivity suffered. Customer experience declined. And competitors who could afford to upgrade pulled ahead.

For Maria, the old espresso machine was costing her in more ways than one:

Two breakdowns per month, each costing $200-400 in repairs
Slower service during peak hours, losing an estimated $300 per week in walk-aways
Inconsistent coffee quality affecting her reputation
Staff frustration leading to higher turnover

The equipment was not just old; it was actively hurting her business. But without a cash injection, upgrading seemed impossible.

Key Insights: Understanding the Instant Asset Write-Off

What Is the Instant Asset Write-Off?

The instant asset write-off allows eligible businesses to immediately deduct the full cost of qualifying assets, rather than depreciating them over time. For the 2025-26 financial year, the threshold is $20,000 per asset.

      Quick Facts
      Threshold: $20,000 per asset (GST exclusive)
Eligibility: Businesses with turnover under $10 million
Deadline: Asset must be first used or installed ready for use by June 30, 2026
Limit: No limit on the number of assets (each under $20,000)

    

How It Works in Practice

Let us use Maria's espresso machine as an example:

Maria's Calculation:

Cost of espresso machine: $18,000 (GST exclusive)
Business turnover: $850,000 (qualifies as small business)
Marginal tax rate: 32.5% (plus Medicare levy)
Tax saved: $18,000 x 0.36 = $6,480

Instead of claiming around $3,600 per year over five years (using prime cost depreciation), Maria claimed the full $18,000 in the year she bought the machine. That $6,480 tax saving went straight back into her business.

What Can You Claim?

Almost any new or second-hand asset used for business purposes qualifies, including:

Vehicles (up to the car limit of $69,674 for 2025-26)
Tools and equipment
Computers, laptops, and tablets
Office furniture
Machinery
Air conditioning and heating systems
Point-of-sale systems
Commercial kitchen equipment

What Is Excluded?

Assets that are leased out
Horticultural plants
Software allocated to a software development pool
Assets not used in your business

Real Numbers: Maria's Complete Tax Position

Maria did not stop at the espresso machine. With her accountant's guidance, she took a strategic approach to upgrading her cafe:

Maria's 2025-26 Asset Purchases

Asset	Cost (ex GST)
Commercial espresso machine	$18,000
New point-of-sale system	$4,500
Commercial blender	$2,800
Outdoor furniture set	$6,200
Laptop for bookkeeping	$2,100
Total	$33,600

Each asset was under $20,000, so Maria could claim the full cost of all five assets immediately. At a 36% effective tax rate, that is $12,096 in tax savings in a single year.

"It completely changed how I think about investing in my business," Maria explains. "Instead of putting off purchases, I now ask: do I need this for my business, and can I claim it? If yes to both, I make the investment."

How TaxBot Helps You Maximise the Write-Off

TaxBot is built for small business owners like Maria. Here is how we help you make the most of the instant asset write-off:

Threshold Tracking: TaxBot monitors your asset purchases and alerts you when you are approaching the $20,000 threshold on individual items.
Eligibility Check: Our AI verifies your business turnover and confirms you qualify for the write-off.
Tax Impact Calculator: See exactly how much tax you will save before you buy. Make informed decisions with real numbers.
Deadline Reminders: Never miss the June 30 deadline. TaxBot sends you alerts as the end of financial year approaches.
Asset Register: Keep a compliant record of all your business assets, complete with purchase dates, costs, and depreciation schedules.
Receipt Capture: Scan invoices and receipts for instant categorisation and storage.

With TaxBot, you are not just tracking expenses. You are making strategic decisions that put more money back in your business.

Action Steps: How to Take Advantage Now

Review your equipment needs: What is holding your business back? Make a list of assets that would improve productivity, customer experience, or efficiency.
Check pricing: Focus on items under $20,000 (GST exclusive). If an item is over the threshold, consider whether a slightly cheaper alternative would work.
Confirm your eligibility: Ensure your business turnover is under $10 million and you are operating as a sole trader, partnership, company, or trust.
Time your purchase: The asset must be installed and ready to use by June 30, 2026. Do not leave it to the last minute. Supply chain delays can catch you out.
Keep records: Store invoices, proof of payment, and evidence that the asset is used for business purposes.
Talk to your accountant: Confirm how the write-off fits your overall tax strategy.

Conclusion: The Clock is Ticking

Maria's story is not unique. Across Australia, smart small business owners are using the instant asset write-off to modernise their operations, improve productivity, and reduce their tax bills. But this opportunity will not last forever.

The $20,000 threshold ends on June 30, 2026. After that date, the threshold may drop, and the tax benefit will shrink. If you have been putting off equipment purchases, now is the time to act.

"I wish I had done it sooner," Maria says, watching her barista craft a perfect latte on the new machine. "The tax saving was great, but the real benefit is how much better my business runs now. That is priceless."

Download TaxBot today and start tracking your asset purchases. See exactly how much you could save with the instant asset write-off, and make confident decisions that grow your business.