This proposal would create an ongoing Australian Investment Guarantee to allow all businesses to immediately deduct 20 per cent of investment in eligible depreciable assets, except structures such as buildings.  

The remaining investment in eligible depreciable assets not immediately deducted would continue to be deductible over the effective life of each asset.   

The proposal would only apply to assets above $20,000 in value, no pooling of lower value assets would be allowed. The eligible assets would include tangible machinery, plant and equipment, as well as depreciating intangible assets for both upgrades and new purchases. It would not apply to passenger motor vehicles, but it would apply to:

• non‐passenger motor vehicles such as lorries, vans, utes and trucks that are used to support trade businesses
• battery electric vehicles that are powered solely by batteries charged from an external power source, and hydrogen fuel cell vehicles.

The Australian Investment Guarantee would not apply to otherwise eligible expenditure currently claimed under the existing research and development tax concession.

The proposal would commence on 1 July 2021 and continue indefinitely.