Say goodbye to the year-by-year guessing game. The federal government has officially locked in the $20,000 Instant Asset Write-Off as a permanent fixture of the Australian tax system.

If you are a small business owner or sole trader, here is what this means for your cash flow:

The Threshold: Up to $20,000 (GST-exclusive) per asset. You can immediately deduct the full cost of eligible new or second-hand items instead of depreciating them over years.

No Overall Cap: The limit applies on a per-asset basis. You can instantly write off multiple assets in the same financial year, as long as each individual item costs less than $20,000.

Who Qualifies: Small businesses with an aggregated annual turnover of less than $10 million using simplified depreciation rules.

What You Can Claim: Everything from new tools for tradies, office laptops, and tech upgrades, to commercial kitchen gear or coffee machines.

Crucial Rule: The asset must be first used or installed ready for use within the income year you claim it. Simply ordering or paying for a piece of equipment isn’t enough to secure the deduction!

Before you go on a shopping spree, make sure your purchases align with your actual business needs and cash flow strategy.

Check out the full eligibility rules directly on the Australian Taxation Office (ATO) website or speak with Deb from Stellar Accounts – https://stellaraccounts.com.au/.