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Interaction of tax depreciation incentives

The information on this page is a guide to tax depreciation incentives and when businesses could consider using them.

Last updated 9 March 2022

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

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

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