ATO issues update on loss carry back tax offset, IAWO incentives
What happened
The ATO issued an update confirming the $20,000 instant asset write-off and a loss carry-back tax offset are now law and effective from 1 July 2026. The guidance clarifies eligibility and that the measures apply from the stated income year start, making the incentives operational for small and eligible corporate tax entities. Watch uptake from small-business clients and whether they accelerate asset purchases or ask for tax-retrofit work
Why the category manager should care
Treat the ATO update as a real, immediate demand driver for tax and payroll advisory; suppliers will see requests to accelerate implementations
Key facts
- Instant-asset write-off permanently set at $20,000 per eligible asset
- Measures apply to income years starting on or after 1 July 2026
- Loss carry-back refundable offset available to eligible corporate tax entities