Stop Waiting. New Hardware for Your Shop Could Cost You Less Than You Think

For years, the $20,000 instant asset write-off was something small businesses could never quite rely on. It kept getting extended at the last minute, year after year. Planning around it felt risky.

That’s changed. Treasurer Jim Chalmers confirmed in the 2026–27 Budget that the $20,000 instant asset write-off will become a permanent fixture of the Australian tax system. No more annual extensions. No more last-minute legislation. Australian Taxation Office

From 1 July 2026, small businesses with turnover up to $10 million will be able to immediately deduct eligible assets costing less than $20,000, rather than depreciating them over several years. The full cost comes off your taxable income in the year you buy and install the asset. Australian Government Budget

One important note: this measure is not yet law, so speak to your accountant before making purchase decisions based on it. But the direction is clear, and businesses that have been putting off hardware upgrades now have a strong reason to act. Australian Taxation Office

What this means for retail hardware

A reliable point-of-sale setup — touchscreen terminal, receipt printer, barcode scanner, cash drawer — typically sits well under the $20,000 threshold. The $20,000 limit applies on a per-asset basis, so you can immediately write off multiple assets in the same financial year. Buy a new terminal and a barcode scanner separately, and both qualify. Australian Taxation Office

That changes the real cost of upgrading. Hardware you’ve been running past its useful life because replacement felt expensive looks different when you can deduct the full purchase price this year rather than depreciating it over five.

Old hardware costs you quietly

Slow terminals frustrate staff and customers. A system that crashes during a busy Saturday morning costs more than any hardware upgrade. Printers that jam, scanners that miss barcodes, cash drawers that stick — these are small frictions that add up across hundreds of transactions a week.

The case for replacing worn-out hardware was always there. The tax treatment now makes the timing easier to justify.

Tower Systems and retail hardware

Tower Systems supplies and supports hardware for independent retailers — terminals, scanners, printers, and accessories that are spec’d and tested to work with its POS software. You’re not buying generic equipment and hoping it works. The hardware and software are matched.

For a retailer who has been running ageing equipment, this is worth a conversation. Good hardware makes your software faster, your staff more confident, and your customer experience cleaner.

Talk to your accountant about the instant asset write-off and whether it applies to your situation. Then think about what in your shop is overdue for an upgrade.

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To find out more about Tower Systems hardware and POS software for independent retailers, call 1300 662 957, email sales@towersystems.com.au or visit www.towersystems.com.au.