# ATO: Use tax incentives to help your business grow



## Jack Malarkey (Jan 11, 2016)

From the Australian Taxation Office’s small business newsroom:









Use tax incentives to help your business grow


Unsure about which depreciation incentives to claim? Help is at hand.




www.ato.gov.au





*Use tax incentives to help your business grow*










*7 June 2021*

Tax time's just around the corner, don't forget the range of tax depreciation incentives which you may be able to claim for your business’s assets.

Temporary full expensing allows businesses to claim an immediate deduction for the business portion of eligible new depreciating assets.

Small businesses can also claim an immediate deduction for the business portion of eligible second-hand depreciating assets.

The asset must be first used or installed ready for use for a taxable purpose between 7.30pm AEDT on 6 October 2020 and 30 June 2022.

Instant asset write-off also allows an immediate deduction.

The threshold for each asset is $150,000 for assets purchased by 31 December 2020 and first used between 12 March 2020 and 30 June 2021. Different thresholds and eligibility apply before 12 March 2020.

Backing business investment allows eligible businesses to claim the cost of new depreciating assets at an accelerated rate.

It applies to the 2019–20 and 2020–21 income years.

Only one incentive can apply for each asset, so you should determine which incentive is right for your business.

There's further information available in a comprehensive factsheet on our website.

*See also:*

Factsheet: Interaction of depreciation incentives
Temporary full expensing
Instant asset write-off
Backing business investment – accelerated depreciation


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## Jack Malarkey (Jan 11, 2016)

The car depreciation limit ($59,136 for 2020-21 and $60,733 for 2021-22) still applies to temporary full expensing and all other forms of deduction for depreciation.


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## Jack Malarkey (Jan 11, 2016)

Lassion said:


> And what will happen to my company if I suddenly want to sell my business? So I'll lose everything? Or I won't lose the money. I recently thought about selling the company.


This is an Australian forum.

Seek advice from a tax professional in Canada or from the Canada Revenue Agency.


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