Government to permanently extend $20,000 instant asset write-off

The Government has recently introduced legislation that would make the $20,000 instant asset write-off permanent for small businesses (as announced in the 2026 Federal Budget).

If enacted, the changes would:

• permanently set the instant asset write-off threshold at $20,000 (instead of $1,000) for eligible depreciating assets first used, or installed ready for use, for a taxable purpose from 1 July 2026; and

• permanently set the general small business pool threshold at $20,000 from 1 July 2026.

The changes would also further suspend the 'lock-out rule' until 30 June 2027. 

This rule otherwise prevents a business that has chosen not to use the simplified depreciation rules from re-entering the regime for five years.

If you have any questions in relation to the matters discussed in this blog, please get in touch with us.