The ATO has confirmed the instant asset write-off threshold for the 2026–27 income year at $20,000 per asset for small business entities with aggregated turnover less than $10 million. The write-off applies to assets first used or installed ready for use between 1 July 2026 and 30 June 2027. The measure is part of the simplified depreciation rules, which also include the small business pool for assets costing $20,000 or more.
Key Takeaways
- Threshold and Eligibility: $20,000 per asset (GST-exclusive if registered for GST); multiple assets can be claimed.
- Small Business Pool: Assets costing $20,000 or more are added to the pool and depreciated at 30% diminishing value (15% in first year if allocated mid-year).
- Exclusions: Certain assets are excluded (e.g., horticultural plants, in-house software allocated to a software development pool).
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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