Depreciation – 1 July 2020 to 30 June 2022

By Bjorn Kirberg

Instant asset write-off tables – based on entity aggregated turnover

50% Accelerated Depreciation (Assessable income $500 million and under) – Over $150k

A 50% deduction applies from 12 March 2020 until 6 October 2020 and is only available to new assets (not second-hand) purchased for $150,000 or more and first held by 6 October 2020.

The 50% deduction is available in the year of installation with the remainder of the asset’s cost being depreciation under the usual depreciation rules.  

Instant Asset Write-Off Implications and Restrictions

Only available for Australian businesses, where the asset is used and located in Australia.

Not available for equipment purchased in a related entity such as a machinery hire company or a service entity which on-charges the operating business for use of the asset.

Not available for Division 43 capital works assets or assets allocated to a low-value pool.

For companies, this could cause a loss which may be beneficial if wanting to use loss carry back.

General Small Business Pools

Entity’s with a small business pool must write off the full pool balance in the 2021 financial year.

The information in this blog is intended only to provide a general overview and has not been prepared with a view to any particular situation or set of circumstances. It is not intended to be comprehensive nor does it constitute advice. While we attempt to ensure the information is current and accurate we do not guarantee its currency and accuracy. You should seek professional advice before acting or relying on any of the information in this blog as it may not be appropriate for your individual circumstances.

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