ACCELERATED DEPREcIaTION
SUMMARY
Accelerated depreciation for assets acquired 12 March 2020 until 30 June 2021.
POLICY
The government is proposing an accelerated deprecation deduction for eligible assets acquired from 12 March 2020 and first used or installed by 30 June 2021. Eligible taxpayers will receive a deduction of 50 per cent of the cost of the eligible asset on installation, with existing depreciation rules applying to the balance.
Eligible businesses are those with an aggregated turnover up to $500 million. Eligible assets are those that can depreciated under Division 40 of the Income Tax Assessment Act 1997 (that is plant, equipment and specified intangible assets, such as patents), but does not apply to second-hand Division 40 assets, or buildings and other capital works depreciable under Division 43.