Backing Business Investment

Delivering support for business investment

Offering businesses a time-limited incentive to invest, by accelerating depreciation deductions.

The Government is introducing a time-limited 15-month investment incentive to support business investment and economic growth over the short-term, by accelerating depreciation deductions.

The key features of the incentive are:

Benefit
Deduction of 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost;

Eligible businesses
Businesses with aggregated turnover below $500 million; and

Eligible assets
New assets that can be depreciated under Division 40 of the Income Tax Assessment Act 1997 (i.e. plant, equipment and specified intangible assets, such as patents) acquired after the announcement and first used or installed by 30 June 2021. Does not apply to second-hand Division 40 assets, or buildings and other capital works depreciable under Division 43.

Eligibility:

Businesses with aggregated turnover below $500 million, purchasing certain new depreciable assets.

Key Dates:

Applies to eligible assets acquired after the announcement (12th of March) and first used or installed by 30 June 2021.

FAQs

Assets have to be acquired after the 12th of March and installed before 30th of June 2021.

Any businesses with an aggregted turnover of less than $500 million.

New assets that can be depreciated under Division 40 of the Income Tax Assessment Act 1997 (i.e. plant, equipment and specified intangible assets, such as patents)

Backing Business Investment - Frequently Asked Questions(FAQ)

What are the key dates?

Assets have to be acquired after the 12th of March and installed before 30th of June 2021.

What businesses are eligible?

Any businesses with an aggregted turnover of less than $500 million.

What assets are eligible?

New assets that can be depreciated under Division 40 of the Income Tax Assessment Act 1997 (i.e. plant, equipment and specified intangible assets, such as patents)

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