November 2025 has delivered two critical pieces of news for Australian Small and Medium Enterprise (SME) owners, offering clarity on tax planning and improved banking rights. Here’s what you need to know.

1. The $20k Instant Asset Write-Off: Finally Confirmed

After months of uncertainty, the $20,000 Instant Asset Write-Off has passed the Senate and is now confirmed for the 2025-26 financial year. The Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025 sailed through Parliament in November, with Chartered Accountants Australia and New Zealand welcoming the news whilst renewing calls for the measure to be made permanent.

What This Means for Your Business

This confirmation provides the certainty business owners have been waiting for. You can now confidently purchase assets—such as tools, IT equipment, or machinery—costing less than $20,000 and claim the immediate tax deduction in the 2025-26 financial year.

Key details:

• Per-asset basis: The $20,000 threshold applies to each individual asset, allowing for multiple purchases throughout the year
• Eligibility: Small businesses with aggregated annual turnover under $10 million using simplified depreciation rules
• Timing: Assets must be purchased and installed ready for use by 30 June 2026
• Both new and second-hand assets qualify, including machinery, tools, office equipment, technology, and vehicles

Without this extension, the threshold would have reverted to just $1,000 from 1 July 2025—a dramatic reduction that would have significantly impacted small business investment decisions.

2. New Protections for Larger Business Debts

A major win for SMEs came into effect on 28 February 2025 with the expansion of the Banking Code of Practice. The updated Code, approved by ASIC and developed by the Australian Banking Association, significantly expands protections for small business customers.

Expanded Small Business Definition

The definition of a ‘small business’ has been widened to include businesses with up to $5 million in total debt (previously $3 million). This change brings an estimated 10,000 additional Australian businesses under the Code’s protection.

What this means for your business:

• If your business has aggregate borrowings between $3m and $5m, you now access stronger protections regarding loan conditions, financial difficulty assistance, and notice periods for enforcement
• Banks must now provide clearer information about their products and services
• Enhanced protections during periods of financial difficulty

Stronger Guarantor Protections

The new Code also enforces stricter rules when banks take personal guarantees—often from family members supporting a business loan. Key changes include:

• Mandatory meetings: Banks must now take reasonable steps to ensure a meeting is held with prospective guarantors (separately from borrowers) to discuss the implications before signing
• Risk disclosure: Banks must ensure guarantors fully understand the financial risks involved
• Alternative exploration: Banks must explore alternative paths of recovery before enforcing guarantees and taking steps to sell a guarantor’s primary residence
• Limited guarantees: Guarantees are limited to specified amounts and secured property values

As the Australian Small Business and Family Enterprise Ombudsman noted, these “vital small business protections” represent a significant uplift in banking standards.

3. Strategic Implications: Why Q4 2025 Is the Time to Act

With the RBA holding the cash rate steady at 3.60% at its November 2025 meeting, the cost of capital remains stable. The Reserve Bank noted that inflation had picked up to 3.0% (trimmed mean) but attributed some of this to temporary factors, maintaining a cautious approach to future rate movements.

This creates a unique window of opportunity:

• Tax certainty: The write-off extension is now law—no more waiting
• Stable rates: Finance costs are predictable for planning purposes
• Better protections: Enhanced borrower rights under the new Banking Code

The Asset Finance Advantage

Using Asset Finance to fund equipment purchases allows you to preserve cash flow while still triggering the immediate tax deduction. This approach offers the best of both worlds: you get the full tax benefit in the year of purchase, while spreading the actual payment over time.

Whether it’s upgrading your fleet, investing in new technology, or replacing aging equipment, now is the ideal time to review your asset register and financing structures.

Next Steps: Talk to Sanford Finance

Our team can help you navigate these changes and structure your equipment purchases to maximise tax benefits while protecting your cash flow. Whether you’re looking to take advantage of the instant asset write-off before 30 June 2026, or want to understand how the expanded Banking Code protections might benefit your business, we’re here to help.

Contact us today to discuss your business finance needs and create a strategy that works for your situation.

Disclaimer: This article provides general information only and does not constitute financial, tax, or legal advice. The information is current as at November 2025. We recommend seeking professional advice tailored to your specific circumstances before making any financial decisions.