Instant asset write-off for small businesses permanently extended (May Federal Budget 2026)

The Government will permanently extend the $20,000 instant asset write-off for small businesses with a turnover of up to $10 million. The current $20,000 threshold was set to expire on 30 June 2026, with the threshold then reverting to a $1,000 threshold. However, with this permanent extension, small businesses will have more certainty over asset purchases going forward.

Assets valued $20,000 or more can continue to be placed into the small business simplified depreciation pool. Pool deductions are broadly 15% in the first year an asset is added to the pool and 30% for later years. The provisions that prevent small businesses from re-entering the simplified depreciation regime for five years after opting out will also continue to be suspended until 30 June 2027.