The federal government's 2015 budget included some unexpected good news for small business owners. However the immediate tax deduction for assets costing less than $20,000 purchased by eligible small business owners could be lost if finance is used.

Q. I run a landscaping business and need to update my ute as it is more than seven years old and breaking down regularly. A new ute will cost me a proximally $30,000. Can you tell me whether the immediate write off for assets costing less than $20,000 will be of any benefit to me?

A. To work out whether this new instant tax write-off will be of benefit requires a decision-making process. First, there is no point purchasing an asset unless the benefits outweigh the cost. It does not make business sense to buy something just to receive a tax deduction.

The new ute could produce a benefit given the old one is starting to cost money because of breakdowns and it's causing disruptions to your business when it is off the road. The new ute will also probably have better fuel economy.

The second consideration is that a tax deduction is only a benefit if the business is profitable. If the instant deduction for an asset that costs less than $20,000 increases or creates a loss, the immediate tax benefit is either delayed or lost.