We’re pleased to share with you a small commentary on govt. asset purchase incentive announcement in the last budget shared by our Knowledge Partner Finance Associates.

ATO Instant Asset Write-off

The Treasurer announced in the Federal Budget on 6 October 2020, that the ATO instant asset write off has been extended to all businesses with turnover up to $5 billion. It now applies to all eligible depreciable assets acquired from 6 October 2020 and first used or installed by 30 June 2022. The maximum amount limit has also been removed.

Financing new equipment or a vehicle instead of purchasing it outright can be a good way to preserve cash flow and working capital. The asset might also help you to generate immediate income.

Financing Options are available

It’s a common question for small business owners; how do you get your hands on the equipment you need to grow, while still keeping the all- important cash flow and working capital at healthy levels?

• Assets and equipment can generate immediate income
• Finance can help preserve working capital
• Fixed repayments may give you the ability to budget more accurately
• The asset secures the loan, in which case you don’t have to lock up your property security which can be preserved for future finance such as working capital
• There may be potential tax advantages to consider 

What can be financed?