A spokeswoman for the tax office signalled that use of the accelerated depreciation would be closely monitored and while not yet law, "we plan to engage with small business based on their behaviour and choices. This includes plans to provide clear guidance so that businesses intending to utilise the concessions find it as easy as possible to do so". "If small businesses exhibit behaviours that indicate a high level of risk they can expect a higher level of interaction from the ATO." In an email sent by the Wentworth Galleries on Wednesday to promote a new exhibition of Jacqueline Fowler artwork, the gallery also trumpets "news for small business owners buying art: 100 per cent tax deduction on artworks up to $20,000". "Take advantage of a 100 per cent tax deduction on the purchase of artworks for your business," the email states. "Just announced in the federal budget and immediately available, is a 100 per cent tax deduction allowance for small businesses with a turnover of less than $2 million to spend up to $20,000 (per item) on purchases for your business. Art is an integral part of business presentation and operation for many of our clients."

The $20,000 write off for small businesses is part of a suite of measures, worth up to $5.5 billion, unveiled in Tuesday's budget. A deduction for purchasing art work, as long as it is for business purposes, appears to be within the rules. Gallery art director Ray Aitken told Fairfax Media that a similar measure put in place by Labor, which allowed an instant deduction of up to $6500, had "worked beautifully for us". "We are really keen on it, we think it will be good. I hope it does get a push along, lots of businesses have been reluctant to buy things," he said. On Tuesday Mr Hockey said the measure would not be capped because "we want people to spend, we want people to go out and have a go" though on added that strong measures were in place to ensure that there is no rorting.

"I have absolute confidence in them and I'm sure the tax commissioner does as well and if there's anything to suggest that there will be rorting we'll follow up on it," he said. Institute of Public Accountants chief executive Andrew Conway said the tax deductions wouldn't be exploited as the ATO had capacity to analyse hundreds of thousands of data points to ensure compliance. "The immediate write-off of an asset under $20,000 provides real, direct benefit and cashflow to small businesses now," Mr Conway said. KPMG tax partner James Macky said it was a tax deduction, not a rebate, and so "there shouldn't be exploitation on the basis that if you're not paying any tax you get no benefit from the measure". CPA Australia's head of policy Paul Drum said while all tax measures came with "rort potential", there would be rules that restricted who could claim the tax breaks and would ensure they had to be genuine loss-making businesses.

"Wait until you see the rules," he said. "It won't be open slather." Do you know more? Email: jmassola@fairfaxmedia.com.au