Backing business investment accelerated depreciation

 Author: RileyATO(Community Moderator)Community Moderator

ATO Certified Response31 Jan 2024

Hi again @ceres2023,

Under the backing business investment incentive, eligible businesses can deduct the cost of new depreciating assets using an accelerated rate for the 2019-20 and 2020-21 income years. To be eligible, the depreciating asset must have been:

• new and not previously held by another entity (other than as trading stock)
• first held on or after 12 March 2020
• first used or installed ready for use for a taxable purpose on or after 12 March 2020 until 30 June 2021.

If you're using the general depreciation rules in the 2022-23 income year, you can't write off the balance of an asset for which you have previously claimed deductions under the backing business investment incentive. After claiming accelerated depreciation using the backing business investment incentive, you need to work out your remaining depreciation deductions using the general depreciation rules.

Check out Backing business investment – accelerated depreciation for more info.

If you're a small business entity using the simplified depreciation rules, see Simpler depreciation for small business.