Instant Asset Write-Off

On 4 April 2025, the government announced it will continue to provide support for small businesses by extending the $20,000 instant asset write-off limit for a further 12 months until 30 June 2026.

It has taken this long for them to follow through and this measure is now law.

Small businesses with an aggregated turnover of less than $10 million can claim a tax deduction for:

• the full cost of eligible depreciating assets costing less than $20,000 (ex-GST) that are first used or installed ready for use between 1 July 2025 and 30 June 2026

The $20,000 limit under the measures applies on a per asset basis, so small businesses can instantly write off multiple assets.

The assets can be new or second hand.

Assets valued at $20,000 or more can continue to be placed into the small business pool and depreciated at 15% in the first income year and 30% each income year after that.

In addition, pool balances under $20,000 at the end of 2025–26 income year can be written off 100% as part of your 2026 income tax returns.

More Information

Contact the office on (08) 8431 7444

Alternatively, email us at answers@businessi.com.au