text: Getting the most out of the $150k Instant Asset Write-Off
  One of the best tax breaks for small to medium sized business is the instant asset write-off. This is a great way for businesses to acquire capital assets and obtain an immediate tax deduction.
  With many businesses hesitating to invest in new equipment as a result of the coronavirus, the increased instant asset write-off is designed to provide cash flow benefits and allow these businesses to purchase the necessary equipment they require.
  In the past, a business purchasing an asset could only write off a portion of an asset expense over several years. By deducting the full expense in a single year, you can decrease your taxable income and the tax you owe.
  These temporary increases will be in place until the end of the financial year, and for an asset to qualify it will need to have been purchased between 12th March and 30th June.
  Below are examples of assets that may be purchased
  There are a small number of assets that are excluded. Find out more here.
  Tips for making the most of the Instant Asset Write-Off
  Your business must be currently operating in order to be eligible, just having an ABN is not enough.
  Both new and used assets qualify.
  This tax break is not a cash hand-out, but a deduction that reduces your taxable profit.
  The $150,000 limit is worked out on a GST-exclusive basis. This means that if your business is registered for GST and claims an input tax credit on the purchase, the tax deduction is worked out net of GST
  The asset will need to be installed or used before the 30th of June in order to claim it in the 2019/20 financial year. If the asset is purchased in June, but not installed/available for use until July you lose the entitlement to claim an immediate tax deduction for the asset in the 2019/20 year.
  If the asset is used for both business and personal use, you are only able to claim for the portion you use for business. For example, if you purchase a vehicle that is used for 70 percent business purposes and 30 per cent for personal use, you are only able to claim 70 per cent of the assets value. To claim the full amount, the asset must be used for business purposes only.
  There is no limit to how many assets you can purchase, if each asset costs less than $150,000.
  More information regarding the $150,000 instant asset write-off and other support available for businesses can be found in the links below.