The $20,000 Instant Asset Write-Off Is Now Permanent — Here's What It Means for Your Business

No more waiting on Budget night. From 1 July 2026, small businesses have a permanent, ongoing tax break for new equipment purchases under $20,000.

Uncertainty Made It Hard to Plan Equipment Purchases

For years, the instant asset write-off was extended one financial year at a time. Business owners never quite knew whether it would still be around when they needed it, which made it risky to plan ahead for new tools, computers, vehicles or machinery. Many held off on purchases simply because the tax treatment wasn't guaranteed beyond the current year.

Around 2.7 million small businesses across Australia — those with turnover under $10 million — fall into the eligible bracket. That's a lot of owners who've had to second-guess timing on purchases that could genuinely help their business grow.

A Permanent, Predictable Write-Off

The federal government has now made the $20,000 instant asset write-off a permanent part of the tax system, effective 1 July 2026. In plain terms: if you buy an eligible asset costing less than $20,000, you can claim the full cost as an immediate tax deduction, rather than depreciating it over several years.

Good to know: the threshold applies per asset, not per business. That means you may be able to claim several separate purchases — a new laptop, a piece of machinery, a work vehicle upgrade — all in the same financial year, as long as each one is under $20,000.

There's also a related cash-flow measure worth knowing about: eligible companies can now carry back tax losses against tax paid up to two years earlier, which can generate a refundable tax offset in the right circumstances.

Tax treatment is best confirmed with your accountant. Where Expert Mortgages comes in is the practical side — if a purchase is already part of your plans, we can help you compare finance options so the equipment doesn't have to come entirely out of working capital.

More Confidence to Invest, Without Draining Cash Flow

With the write-off now permanent, business owners can plan equipment and technology upgrades on their own timeline instead of racing a Budget-night deadline. Paired with the right finance structure, that means new equipment can start paying for itself sooner, while cash stays available for day-to-day operations, wages and unexpected costs.

Frequently Asked Questions

• Is the $20,000 instant asset write-off permanent now?

  Yes. From 1 July 2026, it no longer needs to be renewed each financial year — it's now an ongoing feature of the tax system for eligible small businesses.

• Who can use the instant asset write-off?

  Small businesses with aggregated annual turnover under $10 million are generally eligible, provided the asset is used or installed ready for use in the year it's claimed.

• Can I claim more than one asset?

  Yes. The $20,000 threshold applies per asset, so multiple eligible purchases in the same financial year can potentially each be claimed in full.

Thinking about new equipment for your business?

We can help you compare funding options that keep cash flow free while you take advantage of the write-off.

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General advice warning: This article contains general information only and does not take into account your objectives, financial situation or needs. Before acting on it, consider whether it's appropriate for you and seek personalised advice. All loans are subject to lender credit assessment and approval, and terms, conditions, fees and charges apply.