What happens if the asset is used for both business and private purposes?
For example, say a business operating in the music industry spends $30,000 on a superior sound system, and uses that sound system for both income generating activities as well as personal pleasure in equal proportion. It is not likely that the business owner could divide the asset value in half and make a claim for $15,000. Again this is in keeping with the current law.
Can a deduction be claimed for second hand assets?
Yes – the measures will apply to new and second hand asset. This is stated in the Tax Office’s fact sheet.
