The ATO has published an overview of the simplified depreciation rules for small business entities for the 2026–27 income year. The rules, available to entities with aggregated turnover less than $10 million, include the instant asset write-off ($20,000 threshold) and the small business pool (30% diminishing value). The guide also covers the interaction with temporary full expensing (TFE) which ended 30 June 2026, and the treatment of assets previously allocated to the pool.
Key Takeaways
- Instant Asset Write-off: Immediate deduction for assets < $20,000 first used/installed 1 July 2026 – 30 June 2027.
- Small Business Pool: Assets ≥ $20,000 pooled at 30% DV; closing pool balance deducted if < $20,000 at year-end.
- TFE Transition: Assets subject to TFE in prior years continue under TFE rules; no new TFE allocations after 30 June 2026.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
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