For years, the $20,000 instant asset write-off has been a lifeline for small businesses — letting you immediately deduct the full cost of eligible assets rather than writing them off gradually over multiple years. The only problem was the uncertainty. Each year, the question loomed: will it be extended again? That question has now been answered. The 2026 Federal Budget has made the $20,000 instant asset write-off permanent.

What this means for your business

From 1 July 2026, if your business has an annual turnover of less than $10 million, you can immediately deduct the full cost of any eligible business asset costing less than $20,000. This applies to assets purchased and first used (or installed ready for use) in your business before the end of the financial year.

Assets costing $20,000 or more can continue to be added to your small business simplified depreciation pool, where they are written off at 15% in the first year and 30% each year after that. The rules that previously prevented businesses from re-entering the simplified depreciation regime for five years after opting out will also continue to be suspended until 30 June 2027.

Why permanence matters

In past years, the write-off threshold changed multiple times and only ever existed as a temporary measure. This made planning difficult. Businesses were sometimes unsure whether to bring forward equipment purchases, or whether the write-off would still be in place when they finally committed. Making it permanent removes that uncertainty and lets you plan your capital expenditure with confidence.

If your business needs new equipment, tools, vehicles, technology, or other depreciating assets, you no longer need to time purchases around legislative renewal. You can buy what the business needs, when the business needs it — and claim the full deduction in the year of purchase.

Also from the Budget: monthly PAYG instalments

From 1 July 2027, small and medium businesses will be able to opt in to paying their PAYG income tax instalments on a monthly basis and to use ATO-approved calculations embedded directly in their accounting software to work out instalment amounts. This is designed to make tax payments better reflect real-time business activity, reducing the risk of large unexpected tax bills at lodgement time. This is an opt-in arrangement — you won’t be required to change unless you choose to.

The bottom line

The permanent instant asset write-off is one of the most practical budget measures in recent years for small business owners. If you have been holding off on equipment purchases while waiting for certainty, that certainty has now arrived.

Get in touch with us before 30 June to review your asset purchase plans and make the most of this permanent change.

With the end of the financial year just weeks away, most business owners are heads-down managing day-to-day operations. But this is precisely the time to pause and take stock of how your business is actually performing — not just how it feels. A structured review of your key financial metrics now gives you the chance to fix problems, capture opportunities, and walk into the new financial year with a clear picture.

Gross profit margin

Start with your gross profit margin — the percentage of revenue left after you subtract the direct cost of delivering your product or service. If your margin is tracking below budget or below where it was at this point last year, something has changed. Either your prices haven’t kept up with rising input costs, your cost of goods has crept up without you noticing, or your sales mix has shifted toward lower-margin work. Any of these is worth investigating before they become a bigger problem in the new financial year.

Debtor days and cash flow

How long are your customers actually taking to pay you? Debtor days — the average number of days between issuing an invoice and receiving payment — is one of the clearest signals of cash flow health. If your debtor days have stretched out compared to the same period last year, you may have a growing pile of unpaid invoices quietly eroding your working capital. Now is a good time to identify your slow payers, review your payment terms, and consider whether your invoicing and follow-up process needs tightening. On the other side, check your creditor days too — are you paying your suppliers on time, or are there outstanding bills building up?

Revenue vs forecast and cash in the bank

Pull your year-to-date revenue and compare it directly against what you planned at the start of the year. If you’re tracking behind, ask why — is it a market issue, a pricing issue, or a specific client or product line underperforming? If you’re tracking ahead, consider whether your cost base has scaled appropriately, or whether there’s an opportunity to invest before 30 June. Then look at your bank balance right now compared to this time last year. Cash is the ultimate reality check — it doesn’t lie the way profit figures sometimes can.

End-of-year tax planning and write-offs

Before 30 June, this is also the window to consider whether there are any write-offs you should be taking — bad debts you’ve been holding onto, obsolete stock, or assets that are no longer in use. It’s also worth reviewing whether there are any asset purchases or prepayments that make sense to bring forward into this financial year. These decisions are worth running past your accountant rather than making on the fly — the tax implications vary depending on your business structure and current-year income.

The difference between planning and reacting

Businesses that review their numbers regularly — not just at tax time — consistently make better decisions. The metrics above aren’t just housekeeping; they’re the early warning system that tells you whether your business is on track or quietly drifting off course. Taking an hour now to work through these figures is one of the most valuable things you can do before the new financial year begins.