Instant Asset Write Off a major win for small business certainty
Chartered Accountants ANZ
9 May 2026
Australia’s peak accounting body, Chartered Accountants Australia and New Zealand (CA ANZ), welcomes the Treasurer’s announcement that the Instant Asset Write‑Off (IAWO) will become a permanent feature of the tax system in the 2026 Federal Budget.
The IAWO allows eligible small businesses to immediately deduct the cost of assets valued at up to $20,000 each in the year they are first used, but it has been a temporary, year‑to‑year measure for more than a decade, with thresholds changing frequently.
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, Superannuation and Financial Services Leader, Susan Franks, said the announcement represents a significant step forward for small business policy design.
“Small businesses have told us repeatedly that uncertainty around the Instant Asset Write‑Off makes it harder to invest and grow,” Ms Franks said.
“For years, short‑term, year‑to‑year thresholds have created confusion for businesses and advisers, undermining investment planning and adding unnecessary complexity.
“Locking in a stable, long‑term setting is exactly the kind of practical reform we’ve been advocating for, as it cuts red tape, supports confidence and lets businesses focus on running and growing their operations, not second‑guessing the next Budget.”
CA ANZ said the reform demonstrates the value of stable, durable tax settings that provide clarity rather than uncertainty, and noted that it aligns with the organisation’s long-standing call for predictable frameworks that support productivity and long-term economic resilience.
“It’s a simple, effective measure that supports growth and strengthens the economic foundations Australia needs in a challenging global environment,” Ms Franks said.
About Chartered Accountants Australia and New Zealand
Chartered Accountants Australia and New Zealand represents more than 140,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action.
www.charteredaccountantsanz.com
For more information contact:
Owen Roberts, Public Affairs Specialist Australia
M +61 422 644 847