In the 2026-27 Budget (announced 12 May 2026) the Australian Government said it will permanently set the small business instant asset write-off at $20,000 from 1 July 2026. Small businesses with aggregated turnover under $10 million can immediately deduct the full cost of eligible depreciating assets costing less than $20,000, each first used or installed ready for use in the income year. The current $20,000 threshold already applies to assets first used or installed by 30 June 2026, and covers new and second-hand assets. The ATO notes the permanent measure is announced but not yet law.
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$20,000 instant asset write-off to become permanent from 1 July 2026
Why this matters for founders
For an Australian founder running a company under $10M turnover, this turns the write-off from a year-end scramble into an ongoing cash-flow lever, so you can time laptop, tooling and equipment purchases across the whole year and expense each item under $20,000 immediately. Confirm each asset is installed ready for use in the year you claim, and keep watching for the enabling legislation since the permanent rule is not yet law.
Source: Australian Taxation Office
#instant-asset-write-off#tax-deduction#capital-expenditure#depreciation#small-business#taxes#finance#compliance
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