From the ATO Website.

On 12 May 2026, as part of the 2026–27 Budget, the Government announced it will permanently increase the instant asset write-off for small businesses to $20,000 from 1 July 2026 to help improve cashflow and reduce compliance costs.
This measure is not yet law.
Under the measure, from 1 July 2026, small businesses with an aggregated turnover of less than $10 million, can deduct:
• the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use in an income year; and an amount included in the second element of an eligible depreciating asset’s cost that they have incurred in an income year, if they claimed an immediate deduction for the asset under the simplified depreciation rules in a prior income year where the amount is:
• the first amount of second element cost incurred after the end of the income year in which the asset was written off; and less than $20,000.The $20,000 limit under the measure applies on a per asset basis, so small businesses can instantly write off multiple assets.
Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year after that. In addition, pool balances under $20,000 at the end of the income year can be written off.
The provisions that prevent small businesses from re-entering the simplified depreciation regime for 5 years after opting out will continue to be suspended until 30 June 2027.
The Government previously extended the $20,000 instant asset write-off limit for the period 1 July 2025 to 30 June 2026 in the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025. That measure is now law.
More information can be found at https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off