The instant asset write-off is now permanent: The benefits for your business

The $20k instant asset write-off was extended in the 2025/26 Federal Budget. The good news is that the Government made the write-off permanent in the 2026/27 Budget.

Let’s explore what the instant asset write-off is and how it can help your business.

What is the $20k instant asset write-off?

The $20,000 instant asset write-off is a tax measure that allows your eligible small business to immediately deduct the cost of certain depreciable assets costing less than $20,000.What you get is an immediate tax benefit and simpler tax administration, by making it possible to fully expense lower-value assets in the year they are first used or installed.

How does the write-off work?

The instant asset write-off threshold is permanently increased to $20,000 from 1 July 2026. Under the rules of the write-off, if your small business has an aggregated turnover of less than $10 million, you can deduct:

• the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use in an income year; and

• an amount included in the second element of an eligible depreciating asset's cost that you’ve incurred in an income year, if you claimed an immediate deduction for the asset under the simplified depreciation rules in a prior income year where the amount is:

  • the first amount of second element cost incurred after the end of the income year in which the asset was written off; and

  • it is less than $20,000.

Talk to us about making use of the instant asset write-off

If your aggregated turnover for the year is less than $10 million, and you’re not already making use of the write-off, now’s the time to explore this possible tax benefit.

Being able to write off the first $20k of investment in new assets is a major bonus, especially if you’re planning to grow the business, or need to reinvest in new equipment.

Talk to the team and we can explain the possible advantages of the write-off.