Federal Budget 2021

Tax Depreciation in the 2021 Budget

The 2021 Federal Budget puts on hold the budget report with a number of stimulus measures from 2020 which carried over and continued in the 2021 budget.

It is a spending budget that aims to provide further support to the economy and aid in the recovery from the effects of COVID-19.

In terms of spending, there is big spending in the Aged Care sectors, Infrastructure and NDIS. Tax wise the low and middle income tax offset was extended, and the Investment Asset write off was extended.

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

Temporary full expensing:

The budget includes a year extension to temporary full expensing. From 6 October 2020 to 30 June 2023, 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 2023. They 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 6 October 2020 and be used or installed by 30 June 2023. 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

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