This means if businesses want to make a claim under the scheme, the assets purchased must be installed and ready to use by June 30, 2023. This new scheme is a temporary measure and will be in effect until June 30, 2023, following the 12-month extension announced in the 2021 federal budget. Of course, as is the case with most budget measures, legislation was needed in order for the tax incentive to officially come into effect.
Treasurer Josh Frydenberg said the initial scheme started from 7.30pm, Octoor the very moment he began delivering his 2020 budget speech. When did the asset write-off scheme start?
The aim is to get businesses to bring forward spending on new assets by allowing them to claim the full tax deduction upfront, and thereby reducing the amount of tax they pay. The scheme is essentially a vastly expanded accelerated depreciation program that allows businesses to claim a tax deduction for the full value of a purchase after its use, rather than claim depreciation amounts over several years. Under this scheme, businesses will be able to claim the full value of all new eligible depreciable assets of any value that are first used or installed before June 30, 2023.īusinesses will also be able to claim full deductions for the cost of improvements made to existing depreciable assets. This means 99% of businesses - or some 3.5 million businesses - will have access to the scheme, and only the largest Australian businesses will be excluded.