(5 December 2025 – Australia) The Australian government has officially extended the A$20,000 instant asset write-off (IAWO) scheme until 30 June 2026 with calls from industry bodies to expand the provision significantly and make it permanent.
Legislation to extend the threshold was formally passed on 27 November. This formalises businesses ability to instantly write off assets costing less than A$20,000 that are first used or installed ready for use for a taxable purpose between 1 July 2025 and 30 June 2026.
The popular IAWO scheme seeks to improve cash flow by bringing forward deductions from future years, incentivising SMEs to invest in new plant & equipment (P&E) while reducing compliance costs for small businesses as the depreciation does not need to be tracked over time.
“This will help small businesses to invest and grow, improve confidence in our markets and ensure a fairer energy market for Australian families. Labor will always back in Australian small businesses, industries and workers, as part of our efforts to build a more productive and resilient economy” commented Federal Treasurer Jim Chalmers.
The Commercial and Asset Finance Brokers Association of Australia (CAFBA) and the Council of Small Business Organisations Australia (COSBOA) have campaigned for the government to increase the threshold to A$150,000 and make the scheme permanent to provide more certainty to small businesses and ensure they aren’t “let down by short-term sweeteners”.