Global Daily Tax News, Australia Extends Instant Asset Write-Off For Small Firms, (Dec 3, 2025)

Australian lawmakers have signed off on legislation to extend the instant asset write-off measure for small businesses until June 30, 2026.

The measure enables businesses to claim an immediate deduction for the business portion of spending on an asse ...

Australian lawmakers have signed off on legislation to extend the instant asset write-off measure for small businesses until June 30, 2026.

The measure enables businesses to claim an immediate deduction for the business portion of spending on an asset in the year the asset is first used or installed ready for use.

The instant asset write-off can be used for:

multiple assets if the cost of each individual asset is less than the relevant limit; and
new and second-hand assets.

The incentive may be used by businesses with less than AUD10m in aggregated turnover that apply the simplified depreciation rules, on purchases up to AUD20,000 in new equipment or technology, with 4.1 million businesses said to be eligible.

The Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025 was passed by both houses of parliament on November 27, 2025.