IAWO Recordkeeping Checklist Now It's Permanent
In short: Each claim under Australia's permanent $20,000 instant asset write-off needs seven records: the tax invoice, proof of payment, the asset description and serial number, the first-use or installation date, a business-use percentage for mixed-use assets, an asset register entry and any simplified depreciation election. The ATO says to keep them while you hold the asset and for five years after you dispose of it.
Read MorePermanent $20,000 Instant Asset Write-Off Explained
The permanent instant asset write-off 2026 is now law. The Australian Government announced in its 2026-27 Federal Budget, delivered on 12 May 2026, that the $20,000 instant asset write-off (IAWO) would be made permanent from 1 July 2026, and Parliament has since passed it in the Treasury Laws Amendment (Tax Reform No. 2) Act 2026 (assented to on 26 August 2026). That ends the annual cycle of extensions and sunset clauses that has made planning difficult for small businesses since the scheme was expanded during COVID. If you've been using the IAWO for years without thinking much about it, not much will change day-to-day. But if you've ever delayed an equipment purchase because you weren't sure whether the scheme would still exist next financial year, that uncertainty is now gone.
Read MoreInstant Asset Write-Off: What Small Businesses Can Claim in 2026
In short: For the 2025-26 financial year, Australian small businesses with aggregated turnover under $10 million can immediately deduct the full cost of each new or second-hand asset costing less than $20,000. The threshold applies per asset, and the asset must be first used or installed ready for use by June 30. The 2026-27 Federal Budget announced the threshold would be made permanent, and that change is now law.
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