$20,000 instant asset write-off now permanent for small business (September 2026)

If you’ve been delaying equipment purchases because the instant asset write-off seemed to change every year, there’s now more certainty.

As announced in the 2026–2027 Federal Budget, the $20,000 instant asset write-off has been made a permanent feature of the tax system for eligible small businesses. Without the change, the threshold was due to fall back to $1,000 from 1 July 2026.

Eligible small businesses with turnover below $10 million that use the simplified depreciation rules can immediately deduct the taxable-purpose portion of eligible assets costing less than $20,000, provided the asset is first used, or installed ready for use, for a taxable purpose on or after 1 July 2026.

The threshold applies to each individual asset, so multiple assets may qualify. The write-off can apply to a wide range of business purchases, including computers, tools, equipment, furniture and some vehicles used in the business.

The permanent extension provides greater certainty when planning future business investments, but timing still matters. An asset generally must be first used, or installed ready for use, before the deduction can be claimed.