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Accelerated Depreciation for Business

Written by Sarah Pogson . April 05, 2020
2 min read

To support businesses across Australia with the impact of COVID-19, the Federal Government as a part of it's first stimulus package introduced new measures allowing eligible businesses to access accelerated depreciation for eligible assets. This measure includes instant asset write-off assistance and accelerated depreciation for eligible assets

Below we will outline the measure, provide relevant resources and help you understand your eligibility.

See above for the most recent resources available from Treasury. This resource provides an overview of the measure, including examples to help gain an understanding on how the measure can be applied to your business.

Instant asset write-off threshold increased – increased to $150,000

Effective from 12 March 2020, the instant asset write-off threshold has been increased to $150,000 (from $30,000). This is available to businesses with an aggregated annual turnover of less than $500 million (previously $50 million). This measure is available until 30 June 2020.

Backing business investment – accelerated depreciation

A 15 month investment incentive effective from 12 March 2020 and available to 30 June 2021 to support businesses with a turnover of less than $500 million, allowing accelerated depreciation deductions on eligible assets – 50% can be deducted in the year of installation, with existing depreciation rules being applied to the balance of the asset’s cost – resulting in well over 50% of the cost claimable as a tax deduction in the first year of use.

If you would like to read more in relation to the above, the Treasury have released a fact sheet which can be found here.

If you would like to discuss this measure and what it means for you and your business our team is available to assist you. Please don't hesitate to talk with us on (02) 4229 2211 or you can send us your enquiry online.

*The above information was correct at the time of publishing and subject to change*
Written by Sarah Pogson . April 05, 2020
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