Instant asset write-off becomes permanent

Planning to buy new equipment, replace tools or upgrade technology for your business?

The Australian Government has officially made the $20,000 instant asset write-off permanent for eligible small businesses.

Under the measure, businesses with an annual turnover of less than $10 million may be able to claim an immediate tax deduction for eligible assets costing less than $20,000, rather than depreciating them over several years.

The $20,000 limit applies to each eligible asset, which means businesses may be able to claim deductions for multiple purchases.

The write-off has previously been extended on a year-by-year basis. Making it permanent gives business owners confidence that the measure will continue to be available when planning future investments.

Businesses that previously opted out of simplified depreciation can also re-enter the regime until 30 June 2027 without the usual five-year lockout period.