- The IAWO now runs until 30 June 2026, giving businesses extra time to plan asset purchases strategically.
- Mapping out upgrades, aligning purchases with cash flow cycles, and considering financing helps you maximise tax benefits while maintaining liquidity.
- You can claim the full deduction whether you pay upfront or finance the asset, making it a flexible tool for growth.
- Consulting your accountant early ensures eligibility, optimal timing, and combined deductions for maximum advantage.
The instant asset write-off (IAWO), a tax benefit that lets eligible businesses immediately deduct the full cost of certain assets, has officially been extended until June 2026 [1].
With this extension, you have a bit more breathing room, especially if you’re considering making some equipment, vehicle, or tech upgrades.
However, making the most of this write-off does require smart planning.
And because it’s never too early to get your cash flow order, today’s article is all about what you can do over the next 18 months to maximise the tax benefit and upgrade strategically.
What the extension actually means
The IAWO allows business owners to claim immediate deductions on the full cost of eligible depreciating assets in the year they first use or install them, with a maximum write-off of $20,000 per asset.
With the extension locked in until June 30, 2026, here’s what you can look forward to:
- More time to plan, instead of rushing purchases into the current financial year just to take advantage of the incentive.
- Flexibility to choose when and how to purchase assets—either now or over the next 18 months.
- Bigger purchases still qualify, with the write-off continuing to cover assets under the current thresholds (still worth checking the latest figures with your accountant).
How to plan smarter over the next 18 months
Making the most of the IAWO isn’t just about buying assets. It’s about strategic timing and planning:
Map out upcoming upgrades
Now that you know you can benefit from the IAWO until June 2026, you have a clear timeline for making any equipment purchases. So, think about the next 6-18 months and ask yourself:
- Is it time to replace or upgrade any assets?
- Are there purchases that could directly help you earn more money or save time?
- Are there tools, machinery, or tech that could make your team more efficient?
From there, you can prioritise whatever will have the biggest impact and make informed financing decisions while avoiding those last-minute panic buys that sometimes cost you more than they’re worth it. Think of it as a mini “asset roadmap” for your business.
Align equipment purchases with cash flow cycles
Even with the write-off benefit, when you buy an asset still matters. Time a major purchase wrong and your cash flow could take a toll, even if you do claim the deduction.
So, how can you sync these purchases with your natural income and expense cycles?
- Consider seasonality. If your revenue tends to peak at certain times of the year, plan bigger purchases for shortly after, when cash is flowing in.
- Avoid EOFY panic buys. Just because the IAWO is available doesn’t mean you should stretch your budget to meet an arbitrary deadline.
- Spread out purchases when possible. Staggering them over a few months can help keep your cash flow under control while still taking advantage of the write-off.
Consider financing instead of paying upfront
Although the IAWO lets you claim a full deduction right away, you don’t really have to pay the full cost of the asset upfront.
Instead, you can use a business loan to further protect your cash flow and:
- Keep cash on hand for day-to-day operations or unexpected expenses.
- Align repayments with your cash flow cycles, so you’re not stretched during slower months.
- Access bigger or higher-quality assets without tying up all your funds.
And yes, the IAWO applies whether you pay upfront or finance the asset, so getting a loan doesn’t mean you can’t claim the full deduction immediately. A business win-win, if we’ve ever seen one.
Talk to your accountant early
A quick, early-on chat with your accountant can save you plenty of headaches down the line. A few key points to discuss:
- Eligibility - Does the asset you’re after qualify for the write-off?
- Timing - Based on your profit forecasts, is it smarter to make a purchase this financial year or wait until next?
- Other deductions - Can you combine the IAWO with any other incentives for maximum benefit?
- Financing - How might your loan repayments affect tax deductions and overall cash flow?
How Valiant can help you maximise the IAWO
Planning your asset purchases and making the most of the IAWO doesn’t have to be a hassle. That’s where Valiant comes in to lend a hand:
- Tailored loan options - Whether you’re after vehicles, machinery, or tech, we’ll match you with the asset finance solution that best suits your business goals and financial situation.
- Quick approvals and access to funds - You can secure funding in as little as 24 hours and jump on opportunities without missing a beat.
- Expert guidance - A lending expert will be with you every step of the way to help you plan strategically.
With the IAWO extended until June 2026, now’s the perfect time to plan smart and grow your business with confidence. Get a quote today.
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