Treasury Laws Amendment (2020 Measures No. 3) Act 2020 (61 of 2020)

Schedule 4   Extending the instant asset write-off

Income Tax Assessment Act 1997

6   After subsection 40-82(3)

Insert:

(3A) The decline in value of a *depreciating asset you *hold for an income year (the later year ) is the first amount included in the second element of the asset's *cost for the later year if:

(a) you are an entity covered by subsection (4) (about medium sized businesses), or by subsection (4B) (about medium sized businesses and certain amounts) in relation to the amount, for the later year; and

(b) the amount is included:

(i) on or after 12 March 2020; and

(ii) on or before 31 December 2020; and

(c) the amount included is less than $150,000; and

(d) you worked out the decline in value of the asset for an earlier income year under subsection (1) or (2A); and

(e) the later year ends on or after 12 March 2020.

Note: The amount you can deduct may be reduced by other provisions, such as subsection 40-25(2) (about taxable purpose) and section 40-215 (about double deductions).