If your business could do with an upgraded truck in the near future, don’t forget that the government's instant asset write-off scheme ends in June this year.

Here's how you could buy the equipment your business needs and access cash flow benefits from instant asset write offs.

The instant asset write-off allows eligible businesses to claim an immediate deduction for certain costs relating to depreciating assets.

On 11 May 2021, as part of the Federal Budget 2021-22, the Government announced an extension of the Instant Asset Write Off by one year to 30 June 2023.

Depreciating assets may include new business vehicles and equipment. For businesses with aggregated turnover of less than $50 million, the assets can be second-hand.

Businesses with aggregated turnover between $50 million and $500 million may be eligible to deduct the full cost of eligible second-hand assets costing less than $150,000 that are purchased by 31 December 2020 and first used or installed by 30 June 2021.

Deduction claims may be made for the year in which the equipment is used or installed ready for use. This may be the same year in which you finance the equipment.

You may be able to borrow funds to purchase equipment and still claim a deduction for the cost of eligible items.

For detailed information on the measures visit the ATO website.