Australia introduces instant asset write-off alternative $5b turnover test and opt out rule

Executive summary

On 2 December 2020, previously announced amendments were introduced into Parliament (in Treasury Laws Amendment (2020 Measures No. 6) Bill 2020) to:

• Provide an alternative turnover test (<$5 billion¹ alternative test) for the temporary “full expensing of depreciating assets” instant asset write off (IAWO) 2020 Budget measure (Subdivision 40-BB²); and
• Allow taxpayers to opt out of this IAWO and the backing business investment incentive rules (Subdivision 40-BA²).

The Bi…