Show download pdf controls
  • Interaction of tax depreciation incentives

    In 2020 the government introduced measures to help businesses recover from the impacts of the coronavirus pandemic (COVID-19).

    Eligible business entities may be looking at which tax depreciation incentive is right for them.

    Only one incentive can apply for an asset. If more than one incentive could apply to an asset the order of application is (subject to opt out choices):

    1. Temporary full expensing
    2. Instant asset write-off
    3. Backing business investment
    4. General depreciation rules

    Note: as part of the Budget 2021–22, temporary full expensing is to be extended for another year. The measures announced as part of the Budget are not yet law. We will update this content once the extension is law.

    We have prepared a high-level snapshot to help you work out how these incentives may apply to you.

    Next steps:

      Last modified: 20 May 2021QC 65722