The $20,000 instant asset write-off is now permanent

For the past couple of years, the $20K instant asset write-off has been extended twelve months at a time. Under the law as it stood, the threshold was going to drop back to $1,000 from 1 July 2026. Legislation that passed Parliament recently has now locked it in at $20,000 permanently.

How it works

If your business has aggregated turnover under $10 million and uses the simplified depreciation rules, you can immediately deduct the business portion of an eligible asset costing less than $20,000, provided it is first used or installed ready for use from 1 July 2026.

The threshold applies per asset, so several qualifying purchases can each be written off in full. Anything costing $20,000 or more goes into the small business pool and is depreciated at 15% in the first year then 30% each year after that.

What actually changes for you

The rules themselves are the same ones you have been using. What changes is the certainty. The annual guessing game about whether the threshold would be extended again is over, so you can buy equipment when the business needs it rather than rushing a decision before 30 June.

That said, the deduction is still only worth having if the asset is needed or helps you generate revenue. Spending $18,000 to save tax at 25% is not a good outcome on its own.

Need accounting advice tailored to physiotherapy businesses? Book a free 20-min initial chat with Inspire Accountants.