New legislation would lock in the higher threshold for good, giving business owners certainty for asset purchases from 1 July 2026 onwards.
The government has introduced legislation that would lock in the $20,000 instant asset write-off for small businesses permanently, following its announcement in the 2026 Federal Budget.
If passed, here's what would change:
- The instant asset write-off threshold would be permanently set at $20,000 (up from the current $1,000) for eligible depreciating assets first used, or installed ready for use, for a taxable purpose from 1 July 2026 onwards.
- The general small business pool threshold would also be permanently set at $20,000 from 1 July 2026.
- The "lock-out rule" would continue to be suspended until 30 June 2027.
What's the lock-out rule? Normally, if a business opts out of the simplified depreciation rules, it's locked out of re-entering that regime for five years. This suspension means businesses can move in and out more freely, at least until mid-2027.
The Senate referred the Bill to the Economics Legislation Committee on 25 June 2026, with submissions closing 16 July 2026 and a reporting date of 13 August 2026 — so the committee is due to report back this week.
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