Small businesses have been given extra time to use the Federal Government’s $20,000 instant asset write-off, with laws to extend the tax break to 30 June 2026 passing the Senate last week.
The extension allows small businesses with annual turnover of less than $10 million to immediately deduct eligible assets costing less than $20,000, rather than depreciating them over time.
Because the instant asset write-off applies on a per-asset basis, eligible businesses can write off multiple purchases under the $20,000 threshold. That could include new tools for tradies, kitchen equipment or coffee machines for cafés, and laptops, desktops or tablets for small businesses.
The South Australian Business Chamber, through its federal counterpart the Australian Chamber of Commerce and Industry, continues to advocate for the instant asset write-off to be made permanent, for the threshold to be lifted to $50,000, and for it to apply to businesses with up to $50 million in turnover.
Legislating this as a permanent feature of the tax system would end the annual uncertainty and give small businesses the confidence to invest in new equipment and technology.
