$20,000 Instant Asset Write-Off Now Permanent

What Small Businesses Should Know

If you’ve been in business for a while, you’ve probably noticed the instant asset write-off rules seem to change every few years.

Different thresholds, temporary extensions and waiting to see “what happens in the next budget” has made it hard for many business owners to confidently plan equipment purchases ahead of time.

That’s why the recent announcement to make the $20,000 instant asset write-off permanent is positive news for small businesses.

It gives business owners more certainty when planning upgrades, replacing equipment or investing in technology to support growth.

So, what is the instant asset write-off?

In simple terms, it allows eligible businesses to claim an immediate tax deduction on certain business assets, instead of depreciating them over several years.

Rather than spreading the deduction over time, you may be able to claim the full cost in the same financial year the asset is purchased and ready to use.

Who may be eligible?

Businesses with an aggregated annual turnover under $10 million may qualify.

What types of assets can be included?

Eligible assets under $20,000 may include:

• Equipment and machinery
• Tools and trade equipment
• Computers and business technology
• Office equipment
• Certain business vehicles*
• New and second-hand assets

Importantly, the $20,000 limit applies per asset, not as a total yearly cap, meaning multiple purchases may qualify.

*Motor vehicles remain subject to car cost limits.

Why this matters for business owners

For many businesses, cash flow and timing matter just as much as the purchase itself.

Having more certainty around the write-off means business owners can make decisions based on what the business actually needs, rather than rushing purchases before rules potentially change again.

We often see businesses delay upgrading equipment because they’re unsure what incentives will still be available. This announcement gives business owners more confidence to plan ahead.

Potential benefits may include:

• Improving cash flow
• Simplifying tax reporting
• Upgrading outdated equipment sooner
• Investing in productivity and growth
• Reducing the need to spread depreciation over several years

A quick reminder before purchasing

As always, eligibility depends on your business structure and individual circumstances.

Before making significant purchases, it’s important to speak with your accountant or adviser to understand what’s right for your situation.

Thinking about upgrading equipment?

Whether you’re replacing old machinery, investing in vehicles or upgrading technology, the right finance structure can make a big difference to cash flow and flexibility.

At Atlas Broker, we work with Australian businesses every day to help make those decisions simpler and support growth with confidence.