The $20,000 instant asset write-off has been confirmed as a permanent feature of the tax system for small businesses with annual turnover of less than $10 million from 1 July 2026. This removes the uncertainty that has surrounded the concession for several years, with successive governments extending it on a year-by-year basis.

The write-off allows eligible small businesses to immediately deduct the full cost of any eligible asset costing less than $20,000 in the year it is first used or installed rather than depreciating it over a number of years. The $20,000 limit applies on a per-asset basis, meaning multiple assets can be written off in the same year provided each individual asset is under the threshold.

If you have been holding off on equipment or other asset purchases pending clarity on whether this concession would continue, that uncertainty has now been resolved.

If you are planning to purchase equipment or other business assets, the instant asset write-off is now permanent but timing and eligibility still matter.

Please contact us before making any significant purchases so we can confirm the asset qualifies and consider the timing relative to your financial year end.
t: +61 7 3177 4120
e: advisors@hksrussell.com

Posted on May 15, 2026 by Charisse Russell - Articles