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

3   After subsection 40-82(2)

Insert:

(2A) The decline in value of a *depreciating asset you *hold for the income year (the current year ) in which you start to use the asset, or have it *installed ready for use, for a *taxable purpose is the amount worked out under subsection (2B) if:

(a) you are an entity covered by subsection (4) (about medium sized businesses), or by subsection (4A) (about medium sized businesses and certain assets) in relation to the asset, for:

(i) the current year; and

(ii) the income year in which you started to hold the asset; and

(b) you first acquired the asset:

(i) at or after 7.30 pm, by legal time in the Australian Capital Territory, on 2 April 2019; and

(ii) on or before 31 December 2020; and

(c) the current year ends on or after 12 March 2020; and

(d) you start to use the asset, or have it installed ready for use, for a taxable purpose:

(i) on or after 12 March 2020; and

(ii) on or before 31 December 2020; and

(e) the asset is a depreciating asset whose *cost as at the end of the earlier of:

(i) the end of the current year; and

(ii) 31 December 2020;

is less than $150,000.

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).

(2B) The amount is:

(a) unless paragraph (b) applies - the asset's *cost as at the earlier of:

(i) the end of the current year; and

(ii) 31 December 2020; or

(b) if the asset's *start time occurred in an earlier income year - the sum of:

(i) the asset's *opening adjustable value for the current year; and

(ii) any amount included in the second element of the asset's cost for the current year, other than an amount included after 31 December 2020.