Can Your Restaurant Claim POS Hardware This Financial Year?

Can POS get instant asset write-off?

A restaurant may claim POS hardware under the instant asset write-off only if it meets the ATO's current turnover test, the asset costs less than the applicable threshold, and the asset is first used or installed ready for use before 30 June. An iPad ordered in June but set up in July may fall into the next financial year. Check the ATO instant asset write-off guidance for current figures.

This article is general information, not tax advice. For help choosing POS hardware and software, compare the iPad POS options for Australian cafes, then confirm the tax treatment separately.

When does instant asset write-off apply?

For the instant asset write-off, the qualifying year is generally set by when restaurant POS hardware is first used or installed ready for use, not by the order or invoice date. Australia's financial year runs from 1 July to 30 June, so a June order that is not ready until July may fall into the next financial year.

Example timeline:

• 12 June: Order placed for iPad POS terminals and a kitchen printer.

• 24 June: Devices delivered, but not yet installed.

• 2 July: Installation and testing completed; first live trading shift.

In this example, the devices are first used after 30 June, so the purchase may fall into the next financial year.

Ask a registered tax agent to confirm the qualifying year before 30 June, especially when devices arrive in stages.

How does instant asset write-off count assets?

The ATO instant asset write-off guidance applies the threshold to each asset. The full cost of an individual asset must be below the applicable threshold for an immediate write-off, so the total invoice value does not decide the outcome.

Splitting an order, invoice or payment does not turn one asset into several. Ask a registered tax agent how the ATO rules apply to your actual POS purchase. For broader startup budgeting, see Cost of Opening a Bar in Australia.

How does depreciation work above threshold?

Equipment that costs more than the instant asset write-off threshold is not usually written off in full in the year you buy it. Instead, it may be depreciated under the simplified depreciation rules if your business is eligible. Confirm the current treatment with a registered tax agent before you decide.

Use these steps to check how a POS purchase above the limit may be treated:

1. Confirm the asset cost. Check the full cost of each asset against the current ATO simplified depreciation guidance threshold.

2. Check your eligibility. Confirm that your business meets the turnover and simplified depreciation conditions for the income year.

3. Record the ready-for-use date. Note when each POS device is first used or installed ready for use, as this affects which income year it falls into.

4. Ask about the small business pool. Ask your tax agent how the small business pool applies to assets at or above the threshold under current ATO rules.

5. Separate GST from depreciation. Your GST credits and the asset's tax cost depend on your GST registration, so ask your tax agent whether to record the cost GST-inclusive or GST-exclusive.

Depreciation affects your tax position, but it does not change your cash flow. Review the purchase against your Complete Guide to Restaurant Profit Margins in Australia before you commit.

Where can restaurants find equipment grants?

Australian restaurants can search for grants, funding and support programs through the business.gov.au grants and programs finder, a free guided search run by the Australian Government. Select your location, industry, business structure, assistance type and grant status. Grants are separate from tax deductions, and eligibility varies by program.

1. Location: Select your state or territory. Tick the regional or rural option if your venue is outside a capital city.

2. Industry: Choose Accommodation and food services.

3. Business structure: Select company, partnership, sole trader, trust or not for profit, matching how your business is registered.

4. Support type: Select Funding or Subsidies and rebates to find equipment-related support. Results under Tax benefits should be checked with your tax agent, not treated as grants.

5. Objectives: Select Equipment, vehicles or tools. Add Online and digital if you are also reviewing ordering or POS upgrades.

6. Grant status: Select Open to see programs you can apply for now. Check Coming soon separately for planning.

7. View results: Open each program page to confirm eligibility rules, closing dates and what costs are covered.

Grant eligibility and tax treatment are separate questions, so confirm both with a registered tax agent. For operational technology options, see Top Kitchen Management Software for Australian cafes and restaurants.

When should you purchase POS hardware to meet the 30 June deadline?

Plan your POS upgrade strategically by working backward from 30 June to confirm all hardware is live before the deadline. You may choose to order equipment in stages or as one consolidated purchase based on operational considerations—such as staff training capacity, cash flow timing, staged expansion plans, or pilot testing needs. Neither spreading purchases across financial years nor consolidating them affects your tax eligibility; what matters for the write-off is whether each asset is first used or installed ready for use before 30 June in a given financial year.

Planning phased versus complete POS implementation

Your choice to roll out POS hardware in phases or all at once depends on your restaurant's operational readiness, not on tax strategy. Consider these factors:

• Staff training capacity: If your team needs time to learn the new system, a phased rollout—for example, implementing one branch or one section of the POS first—can spread training demands and reduce disruption.

• Cash flow: Spreading purchases across financial years may align with your restaurant's cash position, but each purchase must independently meet the ready-for-use deadline to qualify for the write-off in that year.

• Staged expansion: If you are opening new locations or adding terminals over time, you can schedule POS deployment to match expansion timelines. Each stage's assets are tested separately against the write-off criteria.

• Trial or pilot needs: You may wish to test a modern platform like Eats365 in one location before rolling out network-wide. Pilot hardware installed before 30 June qualifies for that financial year; full rollout in the next year qualifies separately.

Remember: splitting an order, invoice, or payment across multiple transactions does not split one asset into several, and it does not change the tax rules. Whether you implement POS in phases or all at once, the date each device is first used or installed ready for use determines which financial year it falls into. Confirm your specific timeline and tax treatment with a registered tax agent before 30 June.

Instant Asset Write-Off Restaurant FAQs

Q: Can I claim POS hardware on my restaurant tax return if it arrives before June 30 but is not installed?

No, having POS hardware delivered before 30 June is not enough to claim the write-off in that financial year. Under ATO rules, equipment must be first used or installed ready for live trading by 30 June. If delivery occurs in late June but installation or staff testing finishes in July, the asset falls into the subsequent income year.

Q: Does the instant asset write-off threshold apply to the total POS invoice or each item?

The threshold applies to each individual asset, not the total invoice cost. If you purchase multiple separately identifiable items—such as an iPad ordering terminal and a receipt printer—each item is tested individually against the per-asset limit. However, components that only operate together as one single functional unit are assessed by their combined total cost.

Q: How do restaurant groups calculate turnover eligibility for the instant asset write-off?

Eligibility requires an aggregated annual turnover below $10 million, which includes the turnover of all connected entities and affiliates. If a restaurant operates as part of a larger hospitality group, the combined turnover of all related businesses must be calculated together. Exceeding this combined limit means the restaurant cannot access simplified depreciation rules for an immediate write-off.

Q: How is restaurant equipment depreciated if it costs more than the write-off threshold?

Equipment costing at or above the threshold cannot be written off in full immediately. Instead, eligible small hospitality businesses can depreciate the asset over time, often by allocating it to a small business depreciation pool under simplified depreciation rules. You must also account for GST registration to confirm whether the depreciable cost is recorded inclusive or exclusive of GST.

Q: Can Australian restaurants combine government grants with equipment tax write-offs?

Government grants and tax deductions are assessed independently by different authorities. While hospitality operators can search for equipment funding or subsidies via business.gov.au, any equipment acquired must still independently satisfy ATO criteria—such as turnover limits and ready-for-use timing—to qualify for write-offs. A registered tax agent should verify both your grant reporting and tax deductions.