Latest Budget Update - Instant Asset Write-off

13.10.20 02:17 PM By Tat-Support

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?
Choosing the right asset and equipment finance can give you further benefits than just preserving your day-to-day funds:

  • 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?

Any asset, plant or equipment that can help generate income for your business may be able to be financed, and can include: 

  • Motor vehicles 
  • Commercial vehicles
  • Plant and machinery
  • Agricultural equipment
  • Solar power equipment
  • Computers, photocopiers and phone systems 
  • Medical and dental equipment
  • Office equipment
  • General business equipment
  • Internal fit-outs 
Talk to us today

As finance brokers, we work with clients to help them find the right finance solution from the range of lenders we have access to. We help clients achieve peace of mind that they are on the right path, with finance that fits their circumstances and is aligned with their goals. So, if you’re looking for business finance, we’re here to steer you in the right direction. Find the guide below, or click here to download. 

We look forward to hearing from you.
The Team at Finance Associates Australia
02 8883 1369 | 208/33 Lexington Drive Bella Vista NSW 2153