From 1 July 2026, eligible small businesses with annual turnover of up to $10 million will permanently be able to instantly write off eligible business assets costing less than $20,000. This means businesses may be able to claim the deduction upfront, rather than depreciating the asset over several years.
Making the instant asset write-off permanent is important because it gives small businesses greater certainty when planning purchases, investment and finance decisions. Instead of waiting each year to see whether the measure will be extended, business owners can plan ahead with more confidence and better align asset purchases with their long-term growth plans.
For many small business clients, this may support cash flow, improve confidence to invest and increase demand for business lending solutions. This could include vehicle finance, equipment finance, technology upgrades, tools, machinery and other assets used in the business.
While detailed eligibility rules should always be confirmed with an accountant or tax adviser, the instant asset write-off has historically applied to assets such as business vehicles, office equipment, technology and laptops, tools and machinery. Assets costing $20,000 or more may still be added to the simplified depreciation pool under the normal small business depreciation rules.
For business owners, the key message is to plan purchases carefully and seek advice before committing. The timing of the purchase, asset type, business turnover and tax position may all affect whether the instant asset write-off is available and how it should be treated.
Important disclosure: This article contains general information only and has been prepared without taking into account your individual objectives, financial situation or needs. It should not be relied upon as personal financial, tax, legal or credit advice. Before making any decision in relation to business purchases, taxation, finance or lending matters, you should consider whether the information is appropriate for your circumstances and seek advice from a qualified accountant, tax adviser, solicitor, financial adviser and/or licensed credit adviser.