Have you heard of Instant Asset Write-off? Are you looking to start, maintain, or even expand a small or medium-sized business?

If the answer to the last question was yes, and the first one, no. You might be losing out on a good deal of potential capital that is sure to aid your entrepreneurial enterprise.

You could save a whole load of money with the Australian government’s income tax initiative to benefit small and medium business – which has been expanded a lot due to the pandemic. (Now, this is money you would be writing off usually for – say ten or so years – but with this scheme, you do it all in one year.)

The maximum limit used to be 20,000-30,000 dollars Australian, but now – until June 30, 2021 – the limit has been raised to a whopping AU$150,000. The government might extend it, but we recommend taking advantage of what is in front of you rather than speculating on what could be.

The initiative covers most things that fall under the ‘depreciable asset’ class. Including, but not limited to, stationery, IT hardware, kitchen equipment – air conditioners – cars, etc. We will focus on its impact on the automobile trade on this page.

The policy works by targeting depreciation or the loss of value by assets over time. You can then ‘write off’ the entire estimated value loss in the year you buy it, meaning you have to pay that much less in income tax. And this is repeatable as long as the thing you buy is less than 150,000 Australian dollarydoos.

Think stationery stock that somehow loses most of its pens every month. Or the one of the leading advice for getting a second-hand car market since cars are notorious for losing out most of their value even a year after purchase.

However, there are catches. One is for the time per cent used for business reasons. And yet another caveat is if you use the vehicle for passengers or non-human payload, with more conditions galore.

Here are the conditions for which the $59,136 car limit applies.