Backing Business Investment (BBI)
On 12 March 2020, the Australian Federal Government announced details of the Backing Business Investment (BBI) package.
This package is intended to support small and medium business investment and growth over the relatively short-term. Its goal is to accelerate depreciation deductions for certain depreciable assets.
Key features of the Backing Business Investment package
Below are the key elements of the BBI support package;
To be eligible, businesses must have an aggregated turnover below $500 Million per annum.
The package was made immediately available as of the announcement on 12 March. It will apply for eligible assets first used or installed before 30 June 2021.
Allows a deduction of 50% of the cost of an eligible asset upon installation. The balance of asset cost will have existing depreciation rules apply.
Does not apply to second-hand assets, or buildings and other capital works.
Please call us now on 02 9457 0869 to discuss how this package may assist your business. We can provide further information to help you to make appropriate decisions for your business.
We hope that yourself and those around you stay safe and healthy over the coming weeks.
Further information regarding relief packages
We have further posts that contain details of other relief packages that have been made available.
For more information, read;
- Australian Federal Government Instant Asset Write-Off increase.
- Small Business Relief Package from the Australian Banking Association.
Visit the government published details of the package at treasury.gov.au/coronavirus.