COVID-19 Support Package: Changes to depreciation 2023
In March 2020, the government introduced a time-limited 15-month investment incentive to support business investment and economic growth over the short-term, by accelerating depreciation deductions.
These depreciation rules apply to businesses with an aggregated turnover between $10 million and $500 million and small business entities (SBE) with a turnover of less than 10 million.
The new rules are:
- The instant write-off amount has increased to $150,000 for assets purchased on or after 12th March 2020.
- Using an accelerated rate to depreciate the cost of assets.
In circumstances where the entity is not an SBE different accelerated depreciation rules apply.
Instant write-off
The instant asset write-off threshold has increased from $30,000 to $150,000.
To qualify for an instant write-off:
- the business turnover should be less than $500 million.
- the asset must have been purchased and first used or installed and ready for use on or after 12 March 2020.
- the asset must be used for business purposes. If there's private use, claim only the business %.