The end of the financial year is fast approaching and it is time to make those last minute deductions for your business. Introduced by the Federal Government, the backing business investment - accelerated depreciation scheme is providing support for Australian businesses by encouraging investment and supporting growth.
Businesses are eligible for the scheme if they have an aggregated turnover of less than $50 million in the income year they are claiming the deduction, either 2019-20 or 2020-21. Assets must be new without previous ownership and be first held on or after 12 March 2020. First use of the asset, or installation ready for use must be completed between 12 March 2020 and 30 June 2021.
While there is no limit to the number or cost of eligible new depreciating assets that can have accelerated depreciation applied, a business cannot claim temporary full expensing or instant asset write off for the same assets they are applying accelerated depreciation to.
Learn more about the Government’s backing business investment - accelerated depreciation scheme on the ATO’s website.