9th June 2021 | Tax
23 Business Incentive Summary – Plant & Equipment
To assist you, we’ve updated our 3 tables summarising all the 2020 to 2023 business stimulus incentives available for plant & equipment purchases for small, medium and large businesses. It includes all immediate write-offs, the backing business policy, business pools and the very beneficial full expensing policy.
Please view the updated tables and claim more with our comprehensive tax depreciation schedules.
Small business entities
| Pre COVID-19 stimulus | COVID-19 stimulus | FY 2021 & 2022 Budgets | |
|
Instant asset write-off / temporary full expensing |
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| 7.30pm (AEDT) 2 April 2019 – 11 March 2020 |
12 March 2020 – 7.30 pm (AEDT) 6 October 2020 |
7.30pm (AEDT) 6 October 2020 – 30 June 2023 |
|
| Aggregated turnover | Under $10 million | Under $10 million | Under $10 million |
| Threshold | Up to $30,000 | Up to $150,000 | No threshold – temporary full expensing* |
| Qualifier | New and second-hand assets |
New and second-hand assets. First use or installed by 30 June 2021. |
New and second-hand assets. First, use or installed by 30 June 2023. |
|
Backing Business Investment (BBI) |
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| N/A | 12 March 2020 – 7.30pm (AEDT) 6 October 2020 |
N/A | |
| Asset cost | – | $150,000 and over | – |
| First-year rate – SBE using simplified depreciation |
– | 57.5% | – |
| Qualifier | – | New Div 40 assets only | – |
|
General small business pool |
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| 7.30pm (AEDT) 2 April 2019 – 11 March 2020 |
12 March 2020 – 7.30pm (AEDT) 6 October 2020 |
7.30pm (AEDT) 6 October 2020 – 30 June 2023 |
|
| Threshold | $30,000 and over | $150,000 and over | |
| Qualifier | Assets $30,000 and over can be placed in the SBE general small business pool. |
Assets $150,000 and over can be placed in the SBE general small business pool. If balance below $150,000 at 30 June 2020 deduct in full. |
Deduct balance of general |
Medium business entities
| Pre COVID-19 stimulus | COVID-19 stimulus | FY 2021 & 2022 Budgets | |
| Instant asset write-off / temporary full expensing | |||
| 7.30pm (AEDT) 2 April 2019 – 11 March 2020 |
12 March 2020 – 7.30pm (AEDT) 6 October 2020 |
7.30pm (AEDT) 6 October 2020 – 30 June 2023 |
|
| Aggregated turnover | $10 million – $50 million | $10 million – $50 million | $10 million – $50 million |
| Threshold | Up to $30,000 | Up to $150,000 | No threshold – temporary full expensing* |
| Qualifier | New and second-hand assets |
New and second-hand assets. First use or installed by 30 June 2021. |
New and second-hand assets. First use or installed by 30 June 2023. |
| Backing Business Investment (BBI) | |||
| N/A | 12 March 2020 – 7.30 pm (AEDT) 6 October 2020 |
N/A | |
| Asset cost | – | $150,000 and over | – |
| First-year rate | – | 50% asset cost + (remaining 50% x effective life rate) |
– |
| Qualifier | – | New Div. 40 assets only | – |
Large business entities
| Pre COVID-19 stimulus | COVID-19 stimulus | FY 2021 & 2022 Budgets | |
| Instant asset write-off / temporary full expensing | |||
| 7.30pm (AEDT) 2 April 2019 – 11 March 2020 |
12 March 2020 – 7.30pm (AEDT) 6 October 2020 |
7.30pm (AEDT) 6 October 2020 – 30 June 2023 |
|
| Aggregated turnover | Over $50 million | $50 million – $500 million | Under $5 billion |
| Threshold | – | Up to $150,000 | No threshold – temporary full expensing* |
| Qualifier | – | New and second-hand assets. Purchased on or before 31 December 2020 and installed on or before 30 June 2021. |
New assets first use or installed by 30 June 2023. Aggregated turnover between $50 million and $500 million: Can write-off second-hand assets up to $150,000, purchased on or before 31 December 2020 and installed on or before 30 June 2021, under enhanced instant asset write-off. |
| Backing Business Investment (BBI) | |||
| N/A | 12 March 2020 – 7.30 pm (AEDT) 6 October 2020 |
||
| Asset cost | – | $150,000 and over | – |
| First-year rate | – | 50% asset cost + (remaining 50% x effective life rate) |
– |
| Qualifier | – | New Div. 40 assets only | – |
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