Backing Business Investment – Accelerated Depreciation

About this grant

This arrangement allows you to claim depreciation of new business assets at a faster rate in your tax return.

Eligibility requirements

All of the following criteria must be met:

• Businesses with turnover of less than $500 million.
• Eligible businesses, for the 2019–20 and 2020–21 income years, may be able to deduct the cost of new depreciating assets at an accelerated rate using the backing business investment – accelerated depreciation rules.
• For each new asset, the backing business investment – accelerated depreciation deduction applies in the income year that the asset is first used or installed ready for use for a taxable purpose.
• Eligible businesses
• Businesses are eligible for the backing business investment – 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.
• Eligible assets
• 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 have had either of the following applied:
• The instant asset write-off rules.
• Funding for canberra artists, groups and organisations to undertake arts activities
• Sustainability support for sa small businesses
• Funding for disaster affected wa primary producers

What the funding covers

• Faster depreciation of assets as tax deductions.

How to apply

1. 1Confirm readiness: Ensure you meet criteria (e.g., ABN, turnover limits, GST registration), align project objectives with grant goals, and estimate time for evidence gathering and writing.
2. 2Gather evidence: Collect documents like financials, business plans, market research, project budgets, resumes, risk analysis, and support letters to prove capability and impact.
3. 3Register/log in: Obtain an Australian Business Number (ABN) if needed, sign into the relevant portal (e.g., Business Grants Hub portal), and note any prerequisites like advisory service reports.
4. 4Prepare and write application: Address all selection criteria clearly (project details, government alignment, costs, outcomes, benefits); keep concise, factual, and compelling; validate for completeness.
5. 5Review, approve, and submit: Proofread, get stakeholder sign-off, submit online via the portal before deadline (no late entries); expect eligibility check, merit assessment, and outcome notification.
6. 6Visit https://business.gov.au/grants-and-programs/backing-business-investment-accelerated-depreciation for application details

Application tips