Backing Business Investment
The Federal Government recently announced a time limited 15 month investment incentive to support business investment and economic growth over the short term, by accelerating depreciation deductions. This applies to eligible assets acquired from 12 March 2020 and first used or installed by 30 June 2021.
Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset cost.
To be eligible to apply the accelerated rate of deduction, the depreciating asset must:
- be new and not previously held by another entity (other than as trading stock)
- not be an asset to which an entity has applied depreciation deductions or the instant asset write-off rules
- be first held on or after 12 March 2020
- first used or first installed ready for use for a taxable purpose on or after 12 March 2020 until 30 June 2021.
Under the measures, different rules apply depending on whether or not an entity is using the simplified rules for capital allowances for small businesses.
We can help you better understand this legislation, and answer questions . Get in touch now and one of our friendly team members can share free, initial advice with you.
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