Small Business Tax · 1 July 2026

Twenty-thousand-dollar instant asset write-off is now permanent for small businesses

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Good to know

Around 3.5 million small businesses with turnover under $10 million can now claim up to $20,000 per eligible asset as an immediate tax deduction — permanently, not as a temporary measure subject to annual renewal.

In a nutshell: The government made permanent the $20,000 instant asset write-off (IAWO) for small businesses in the 2026–27 budget. Previously the threshold had fluctuated annually and required repeated legislative extension, creating uncertainty. Eligible businesses can deduct the full cost of qualifying depreciable assets up to $20,000 purchased from 1 July 2026. The measure complements the budget’s $3.5bn business and start-up tax package.

Spin Unspin

What they’re saying

Permanence removes the annual uncertainty that had made planning difficult; eligible small businesses can now confidently factor this into capital purchase decisions.

The IAWO is the most immediately useful part of the package for micro and small businesses; start-up concessions and R&D changes are separate and more complex.

Elmasri Accounting cites the budget announcement; AustralianSuper budget summary corroborates the $3.5bn business package and permanent IAWO. No ATO page yet confirms final legislative passage — treat as patchy until ATO updates.

1 July 2026 Changes: Tax, Superannuation, Centrelink and Government Updates Every Australian Should Know - Elmasri Accounting

Superannuation Changes – Federal Budget 2026-27 | AustralianSuper

Do I care?

Confirm asset eligibility on ato.gov.au before purchasing; the $20,000 threshold applies per asset, so multiple qualifying assets can each be written off individually.

If you have been deferring a qualifying equipment purchase, the permanence of the write-off removes the old timing risk.

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