Accelerated depreciation means you can deduct costs for eligible depreciating assets in your tax return at varying percentages. For a medium-sized business, you can deduct 50% of the cost of your asset in the income year it has been first used or installed ready for use. You can also use existing depreciation measures for the same asset.
For example, if your business has an annual turnover of $200 million for the year 2020–2021 income year and you install a $1 million truck-mounted concrete pump for the business, you can claim 50% ($500,000) of the concrete pump’s value under the new accelerated depreciation. In addition, you’ll be able to claim 30% ($150,000) of the remaining $500,000 under existing depreciation rules.
COVID-19 has caused widespread business disruption across industries. In response, the government has made tax changes that could affect how you approach your EOFY preparations.
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