Small Business Support – $20,000 instant asset write-off: Making the $20,000 instant asset write-off permanent for small businesses.

On 12 May 2026, as part of the 2026–27 Budget, the Government announced it will permanently increase the instant asset write-off for small businesses to $20,000 from 1 July 2026 to help improve cashflow and reduce compliance costs. This measure is not yet law.

Under the measure, from 1 July 2026, small businesses with an aggregated turnover of less than $10 million, 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 they have incurred in an income year, if they 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

– less than $20,000.

Find out more on: https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/small-business-support-20000-dollar-instant-asset-write-off