Support Your Business with the $20K Instant Asset Write-Off

Benefit from the $20K Instant Asset Write-Off

As part of the 2026–27 Federal Budget announced on 12 May 2026, the Government will make the $20,000 instant asset write-off permanent from 1 July 2026.

The measure is designed to help small businesses improve cash flow, invest in growth, and reduce compliance costs.

Eligible businesses with an aggregated turnover of less than $10 million will be able to immediately deduct the full cost of eligible depreciating assets costing less than $20,000, provided the asset is first used or installed ready for use during the income year.

The $20,000 threshold applies on a per asset basis, meaning multiple eligible assets can be claimed instantly.

Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool and depreciated at:

15% in the first income year; and
30% each income year thereafter.

In addition, pool balances under $20,000 at the end of the income year can also be written off.

The provisions preventing small businesses from re-entering the simplified depreciation regime for five years after opting out will continue to be suspended until 30 June 2027.

The Government had previously extended the $20,000 instant asset write-off for the period 1 July 2025 to 30 June 2026 under the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025, which is now law.

Whether you’re looking to purchase vehicles, equipment, technology, or other business assets, this measure may provide valuable tax benefits for your business.

Contact our team on 1300 4 MORRIS to speak with one of our finance specialists about how we can assist your business.