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ATO Issues Notice on Last Year to Claim Backing Business Investment Accelerated Depreciation — Orbitax Tax News & Alerts

The Australian Taxation Office (ATO) has issued a notice concerning the last year to claim the backing business investment accelerated depreciation.


Last year to claim backing business investment – accelerated depreciation

Backing business investment – accelerated depreciation (BBI) ended on 30 June 2021. However, businesses with an aggregated turnover of less than $500 million in the year they are claiming the deduction can still claim for the 2019-20 and 2020-21 income years.

Your assets must be new and first held by you at or after 12 March 2020, until 30 June 2021, or installed ready to use for a business purpose in that timeframe.

You can use the Depreciation and capital allowances tool to make sure you're claiming correctly. You must check the eligibility criteria carefully before making a claim, as we review claims as part of our compliance activities.

Most businesses comply with their tax obligations, and we will continue to support those businesses. However, we will actively pursue concerning or fraudulent behaviours we identify.

Behaviours that attract our attention include deliberately inflating deductions or omitting income to generate losses.

It's important to note, you cannot claim BBI for an asset if you use temporary full expensing or instant asset write-off for the same asset.

We have prepared a high-level snapshot to help you work out how BBI, temporary full expensing and instant asset write-off may apply to you. View our tax depreciation incentives infographic to learn more.

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