ATO Asset Write-Off Rules for Medical Clinics (2025 Update)
ATO Asset Write-Off Rules for Medical Clinics (2025 Update)
ATO Asset Write-Off Rules for Medical Clinics (2025 Update)
The ATO’s 2025 asset write-off rules bring new opportunities for doctors and dentists to save on equipment purchases. Here’s what’s changed, what qualifies, and how to align your finance strategy for maximum tax benefit.
What changed in 2025
The Australian Government updated its small business instant asset write-off program in 2025. Eligible businesses with an annual turnover under $10 million can now immediately deduct the full cost of eligible assets up to a certain threshold — including medical equipment, diagnostic tools, and clinic vehicles — purchased and installed before the cut-off date.
Why it matters for medical professionals
For doctors, dentists, and allied health practitioners, the write-off allows significant upfront tax deductions on major purchases. This can free cashflow during periods of clinic expansion or equipment renewal. It also makes structured asset finance even more strategic, as the deduction applies whether the asset is financed or paid outright.
As discussed in Why Medical Professionals Are Using Asset Finance, spreading repayments while claiming eligible deductions can strengthen both liquidity and tax efficiency. Pairing this with the Finance vs Leasing strategy lets you decide whether to buy or lease based on ownership intent and deduction timing.
Eligible purchases for clinics
- Medical and dental equipment (chairs, X-ray systems, autoclaves, etc.)
- Diagnostic technology (ultrasound, ECG, imaging)
- IT infrastructure and software supporting patient systems
- Clinic vehicles and mobile treatment units
- Office fit-outs, signage, and practice furniture
How to structure your finance to benefit
The write-off applies to assets first used or installed by the relevant deadline. This means getting pre-approval and financing early is crucial. Under a Whitecoat Growth Pack, our brokers combine equipment finance and working-capital facilities so you can purchase, install, and claim deductions efficiently before financial year-end.
| Strategy | Tax Advantage |
|---|---|
| Finance + Write-Off | Deduct full cost while spreading repayments. |
| Lease + Write-Off | Deduct lease payments as ongoing operating expenses. |
| Bundle multiple assets | Reduce admin and ensure all purchases meet ATO criteria. |
Timing and compliance
Ensure the asset is ready for use within the same financial year to claim deductions. Keep records of contracts, delivery, and installation. The ATO requires clear proof that the asset is operational before the lodgement date.
How Switchboard Finance helps
Our brokers specialise in working with medical professionals to plan equipment purchases around key tax events. We coordinate with your accountant to ensure compliance and help you leverage your full deduction potential — without disrupting cashflow. Explore your options through our Whitecoat Pack or talk to a broker today.
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FAQ
- Do leased assets qualify for the write-off?
- Generally, only assets you own qualify, but certain chattel mortgage or hire purchase arrangements can still apply — check with your accountant.
- Is there a dollar limit in 2025?
- Yes, the ATO threshold changes annually. Visit their official depreciation and capital expenses guide for current limits.
- Can I combine write-off benefits with financing?
- Yes. Many Switchboard clients finance eligible equipment and still claim full deductions for assets purchased under approved terms.
- How fast can I access finance for qualifying assets?
- Approvals can take as little as 24–48 hours once documentation is submitted.
