Long-running instant asset write-off locked-in with this year's budget.

 

Federal treasurer Jim Chalmers has confirmed the $20,000 instant asset write-off will become a permanent fixture of the Australian taxation system.

 

Chalmers said the federal government will “save small businesses thousands of dollars” by making the long-running instant asset write-off permanent in this year’s federal budget.

 

“This means small businesses will be able to immediately deduct every piece of new equipment worth up to $20,000, from new tech to tools to machinery,” the treasurer said.

 

“This will help save small businesses 376,000 hours a year in compliance, cutting red tape and getting costs down in our economy,” he said.

 

The $20,000 threshold will apply per asset and will expand across tools, technology and other equipment, both new and second-hand, and can be claimed in full at the end of every financial year.

 

The tax measure, which has been in place in some form or another since 2015, is available to small businesses with an aggregated turnover of less than $10 million.

 

Businesses can use the measure to claim multiple purchases of both new and second-hand items, with the $20,000 threshold applying per asset.

 

The budget also includes a two-year loss carry back for all companies up to $1 billion in turnover.

 

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