Businesses are eligible for the backing business investment and accelerated depreciation deduction if they have an aggregated turnover of less than $500 million in the year they are claiming the deduction. The deduction is available in the 2019–20 and 2020–21 income years.
Important: Eligible businesses must check the eligibility criteria carefully before making a claim.
Eligible assets
To be eligible to apply the accelerated rate of deduction under the backing business investment, the depreciating asset must:
be new and not previously held by another entity (other than as trading stock).
be first held on or after 12 March 2020.
first used or first installed ready for use for a taxable purpose on or after 12 March 2020 until 30 June 2021.
not be an asset to which an entity has applied either:
temporary full expensing
the instant asset write-off rules
The Australian Taxation Office (ATO has more information on accelerated-depreciation.
In this example, the accelerated depreciation rate for additions to the general small business pool for the period 12 March 2020 to 30 June 2020.
Log in to HandiLedger and select your entity.
Go to the View menu, then click Depreciation Schedule.
To add the asset to an existing Depreciation Schedule, click Asset, New.
Enter the Asset Name, Historical Cost/Date, Acquisition Cost/Date, Pool - General Pool, Save.
Click Schedule, Pooling.
Enter the 1st Yr Rate % 57.50, then click Save.
Click Report, View.
Example: In the depreciation pool report you will notice two assets, Asset one dated before 12/03/2020 (Rate 15%) and Asset two dated after 12/03/2020 (Rate 57.5%).
Note: The year needs to be marked as Small Business Entity when the General Pool is required.