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  • Intangible asset depreciation

    The Government announced, as part of the Mid-Year Economic and Fiscal Outlook 2018–19 (MYEFO) on 17 December 2018, it will not proceed with the unlegislated 2015–16 MYEFO measure National Innovation and Science Agenda — intangible asset depreciation.

    The 2015–16 MYEFO measure was scheduled to apply to assets acquired from 1 July 2016. The original measure included changes to enable business to:

    • self-assess the tax effective life of acquired intangible assets such as patents, to better align the tax treatment of the asset with the actual number of years it provides an economic benefit, and
    • continue to have the option to use existing statutory effective life to depreciate intangible assets.

    The Government will not to proceed with this measure due to lack of parliamentary support.

    Taxpayers that anticipated the passage of the legislation in determining claims in their 2017 and 2018 tax returns will need to amend their returns accordingly.

    The administrative treatment of taxpayers affected by announced but unenacted legislative measures in set out in PS LA 2007/11.

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      Last modified: 31 Jan 2019QC 47663