Finance and accounting
Instant Asset Write Off (IAWO)
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What is Instant Asset Write Off?
Instant asset write off (IAWO) is an ATO scheme letting eligible small businesses deduct an asset's full cost in the year it is first used, not depreciate it.
Instant asset write off (IAWO) is an Australian Taxation Office scheme that lets an eligible small business claim an immediate tax deduction for the full cost of an asset in the year it is first used or installed ready for use, instead of depreciating it over several years.
A $20,000 threshold applied per asset to assets first used or installed ready for use between 1 July 2025 and 30 June 2026, for small businesses with aggregated turnover under $10 million.
That window has closed, and the threshold for 2026 to 2027 was announced in the May 2026 Budget but is not yet law.
The write off generally applies to a purchased, owned asset rather than a leased one, because an operating lease payment is claimed as an ongoing deductible expense in the year it is paid rather than written off as a capital purchase.
The threshold and eligibility rules are set by the ATO and change between financial years, so check the current figure at ato.gov.au and confirm your eligibility with a registered tax agent before relying on it.
In short
- Lets an eligible small business deduct an asset cost immediately, not over several years.
- The threshold was $20,000 per asset for 2025 to 2026. That year has ended, so check the current figure.
- Applies to owned assets. Operating lease payments are deducted a different way.
Instant write off versus depreciation
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Frequently asked questions
What is the instant asset write off threshold?
A $20,000 threshold applied per asset to assets first used or installed ready for use between 1 July 2025 and 30 June 2026, for small businesses with aggregated turnover under $10 million.
That window has closed and the 2026 to 2027 threshold is not yet law, so confirm the current figure at ato.gov.au.
Can I use instant asset write off on a leased printer?
The write off generally applies to a purchased, owned asset.
An operating lease, the structure most managed print arrangements use, is deducted as an ongoing business expense in the year each payment is made rather than written off as a capital purchase.
Confirm the treatment for your business with your accountant.
Sources
Cyrus Dickie
Founder, Global Document Solutions
You deal with the founder directly, from first quote to ongoing support, since 2010.
Authored by Cyrus Dickie, Founder at Global Document Solutions. In the industry since 2010.
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Related terms
- OpEx vs CapExOpEx is the day to day cost of running a business. CapEx is one-off spending on owned assets. A printer lease is generally OpEx.
- GST on Printer LeasesPrinter lease payments attract GST at 10%. Quotes are usually shown ex GST, and GST-registered businesses can generally claim the GST back.
- Operating LeaseAn operating lease lets a business use equipment such as a printer for a fixed term and return it at the end, without taking ownership.
- PPSRThe PPSR is the national register that records who has a financial claim over equipment, so a buyer can check whether a machine is already financed.
- Residual ValueResidual value is the estimated worth of leased equipment at the end of the term, and it determines who carries the end of lease risk.
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