$20,000 instant asset write-off now permanent for small business

As announced in the 2026–2027 Federal Budget, the $20,000 instant asset write-off has been made a permanent feature of the tax system for eligible small businesses, given greater certainty for planning of business investments.

Eligible small businesses with turnover below $10 million that use the simplified depreciation rules can immediately deduct the taxable-purpose portion of eligible assets costing less than $20,000, provided the asset is first used, or installed ready for use, for a taxable purpose on or after 1 July 2026.

The threshold applies to each individual asset, so multiple assets may qualify. The write-off can apply to a wide range of business purchases, including computers, tools, equipment, furniture and some vehicles used in the business.