25 June 2026

Chartered Accountants Australia and New Zealand (CA ANZ) is urging small businesses to act before 30 June to take full advantage of the Instant Asset Write-Off (IAWO), as it provides guidance to help businesses maximise the benefit this tax time.

The IAWO allows small businesses (businesses with less than $10M turnover) to deduct the cost of eligible assets up to $20,000 each in the year they’re first used or installed.

This upfront deduction improves cash flow and reduces compliance complexity, making it easier for businesses to invest in equipment and technology that supports productivity.

CA ANZ Australian Tax Leader, Susan Franks, said making the IAWO permanent represents a significant step forward after years of advocacy.

“This is exactly the kind of practical reform we’ve been advocating for. It cuts red tape and lets businesses focus on running and growing their operations, not second-guessing the next Budget,” she said.

“If businesses want to take advantage of this tax break this year, they need to act now. Assets must be in use or ready for use before 30 June to qualify.” 

“This is a simple and effective way to improve cash flow, but timing matters.”

What businesses can claim

Assets must be first used, or ready for use, ahead of 30 June to qualify for the IAWO before the end of this financial year.

Each asset is assessed individually, and the $20,000 limit applies per item, not in total.

Multiple assets can be claimed in the same year, provided each asset costs less than $20,000. Both new and second-hand assets are eligible. The deduction applies to the business-use portion of an asset.

This means a business could, for example, purchase several pieces of equipment, such as tools, computers or vehicles (that each cost less than $20,000), and immediately deduct each one provided that they are used entirely for business purposes, rather than depreciating them over several years.

Businesses that have previously written off an asset may also be able to claim additional costs (such as improvements), provided those costs are below $20,000.

Why permanency matters

"Years of last-minute extensions and shifting thresholds have created real planning uncertainty for businesses. Permanency fixes that,” Ms Franks said.