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  • Backing business investment now law

    On 24 March 2020, the Coronavirus Economic Response Package Omnibus Bill 2020 received royal assent. This forms part of the government's measures to support businesses to withstand and recover from the economic impact of COVID-19.

    This package includes the backing business investment measure, which allows eligible businesses to accelerate their depreciation deductions on the purchase of certain new depreciating assets.

    To be eligible for accelerated depreciation:

    • the business must have an aggregated turnover of less than $500 million
    • the asset must be a new depreciating asset acquired and first used, or installed ready for a business use, from 12 March 2020 until 30 June 2021
    • the business must not have already applied other depreciation deductions or the instant asset write off.

    You apply accelerated depreciation by deducting 50% of the cost (or adjustable value where applicable) of the depreciating asset. You then add the amount of the usual depreciation deduction but calculated after first offsetting a decline in value of 50%.

    Alternatively, you may choose to apply the instant asset write-off, if the asset costs less than $150,000.

    See also:

    Last modified: 25 Mar 2020QC 61934