Federal Budget 2020

Tax Depreciation in the 2020 Budget

As expected the budget is one of the most stimulatory budgets in history and is focused on jobs recovery, bringing forward tax breaks and new tax breaks as well as the expansion of the instant right off.

The 2020 Federal budget also brings with it a new level of Debt for the government to boost the post Covid Economy.

The majority of sectors will see a large spend, as well as tax incentives for individual.

So what does the Federal Budget mean for your tax depreciation schedules and how can Real Estate Depreciation Help you?

Temporary full expensing:

From 6 October 2020 to 30 June 2022, businesses with annual turnover up to $5 billion will be able to write off the full cost of eligible assets of any value in the year they are installed, provided they are used by 30 June 2022. The will also extend to the cost of improvements to existing eligible depreciable assets made in this period. SMEs with a turnover between $50-500 million will also be able to instantly deduct the full cost of second-hand assets that cost less than $150 million. These assets however must be purchased by 31 December 2020 and be used or installed by 30 June 2021. For small businesses (aggregated turnover less than $10 million) they can deduct the balance of their simplified depreciation pool at the end of the income year, while full expensing applies

Extending the instant asset write-off:

Government is extending the instant asset write off that had already been expanded as part of its COVID-19 response. Businesses with turnover of up to $500 million can instantly write-off multiple assets worth up to $150,000 each.

R&D incentives:

The government is providing an additional $2 billion through the R&D Tax Incentive. Under the new package, the proposed $4 million cap on annual cash refunds will not proceed, instead small companies (with aggregated annual turnover of less than $20 million) will see the refundable R&D tax offset set at 18.5% above the claimant’s company tax rate.

Small business tax concessions:

Tax concessions currently available to small business with annual turnover up to $10 million have been extended to businesses with turnover up to $50 million. These firms will have access to up to 10 small business tax concessions, including deductions of certain start-up and prepaid expenses, exemptions from the 47% FBT tax on car parking and multiple work-related portable electronic devices, such as phones or laptops

Real Estate Depreciation are licensed Tax Agents and understand the changes to the legislation and how to get the best tax write offs for your business and real Estate Property.

If you have any enquiries on how the changes to the legislation will affect please do not hesitate to contact us.

Jason Thornley | Director

Industry Bodies

Tax Practitioner Board


Australian Institute of Quantity Surveyors


Royal Institution of Chartered Surveyors


Property Council of Australia


Contact Details


Level 3, 240 Queen Street Brisbane QLD 4000


Call - +61 7 3051 0279