The Federal Government of Australia has proclaimed that a capital investment plan that included small and medium businesses has been extended to big businesses as well. Treasurer Josh Frydenberg stated that businesses with a turnover larger than $5 billion can deduct the cost of new capital investments. At first, this measure was meant only for companies whose turnover was up to $3.5 million but, it has been changed. Now, the companies that make less than $5 billion in Australia (and up to $5 billion globally) are allowed to apply.

Mr. Frydenberg said that this plan was introduced to speed up the recovery of the Australian economy that was hit by the pandemic. He added:

“Full expensing temporarily allows businesses with an aggregated turnover of less than $5 billion to deduct the full cost of eligible depreciable assets of any value in the year they are first used or installed.”

This change now affects 50 more businesses that employ more than 150,000 Australians. The Australian Taxation Office (ATO) has issued a warning to applicants not to pretend that they suffer losses in order to get help.

“This change will provide businesses with more flexibility in respect of these measures, removing a potential disincentive for them to take advantage of these incentives,” Mr. Frydenberg said.

Source: https://www.abc.net.au/news/2020-11-23/companies-deduct-new-capital-investment-instant-asset-write-off/12910176

Leave a Reply

Your email address will not be published. Required fields are marked *

The following GDPR rules must be read and accepted:
This form collects your name, email and content so that we can keep track of the comments placed on the website. For more info check our privacy policy where you will get more info on where, how and why we store your data.