By Jodh Mehmi, Mehmi Financial Group
This article is general information as of 7 November 2026, not tax or legal advice. Proposed measures can change before they become law. Confirm how any rule applies to you with a qualified accountant or tax adviser.
Australian small businesses now have a permanent instant asset write-off threshold, and from the same date employers face a major change in when superannuation is paid. Both affect cash flow planning.
The $20,000 instant asset write-off
According to the ATO, the Government announced in the 2026-27 Budget on 12 May 2026 that the instant asset write-off for small businesses would permanently increase to $20,000 from 1 July 2026, and the measure is now law.
- It applies to small businesses with an aggregated turnover of less than $10 million.
- They 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.
- The limit applies per asset, so multiple assets can be written off.
Assets of $20,000 or more
The ATO explains that assets valued at $20,000 or more can continue to go into the small business simplified depreciation pool, depreciated at 15% in the first income year and 30% each year after that. Pool balances under $20,000 at the end of the income year can be written off.
The ATO also says the rule preventing small businesses from re-entering simplified depreciation for 5 years after opting out will continue to be suspended until 30 June 2027.
Payday Super from 1 July 2026
The ATO states that from 1 July 2026 employers must pay employees' super guarantee for each payday instead of quarterly. For businesses that used the quarterly gap as working capital, this changes the timing of cash going out.
Planning cash flow around both changes
- Keep each asset's cost and in-service date on file for your accountant.
- Model super payments on each payroll date, not quarterly.
- Check whether seasonal revenue still covers payroll plus super in slow months.
Business financing in Australia
Mehmi Financial Group arranges business financing in Australia, such as business loans and working capital, through third-party lenders. We do not arrange equipment financing in Australia and we do not give tax advice. See business financing options.
Frequently asked questions
What is the instant asset write-off threshold?
$20,000 per asset, permanently from 1 July 2026, for small businesses with aggregated turnover under $10 million, according to the ATO.
Is the $20,000 write-off law?
Yes. The ATO states the measure is now law.
Does the limit apply per asset?
Yes. The ATO says it applies per asset, so several assets can be written off.
What about assets over $20,000?
They can go into the simplified depreciation pool at 15% in the first year and 30% after that.
What is Payday Super?
From 1 July 2026, employers must pay super guarantee for each payday instead of quarterly.
Is this tax advice?
No. It is general information as of 7 November 2026. Confirm with a registered tax agent.