The re-elected Labor government to extend the instant asset write-off for small businesses
The ALP announced the extension of the $20,000 instant asset write-off for small businesses for another 12 months.
This measure will allow small businesses using the simplified depreciation rules (nothing simple about them 🤣) to continue to deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use by 30 June 2026
Eligibility criteria
The following conditions must be satisfied to be eligible for the instant asset write-off:
The asset must be first installed or ready to use between 1 July 2025 and 30 June 2026
The asset must cost less than $20,000
The annual aggregated turnover of the business must be less than $10 million.
The $20,000 threshold will apply on a per asset basis, so you can instantly write off multiple assets.
Assets valued over the threshold
Assets valued at $20,000 or more (which cannot be immediately deducted) can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter.
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Please note this measure is still in announcement stage and will require Parliamentary approval to become law.
Please reach out to us if you have any questions about these announcements.
