Govt reverses depreciation ruling

Govt reverses depreciation ruling

Important news if your business has intangible assets like patents, copyrights, licences, computer software rights and others.

Last year’s federal budget allowed businesses to decide the effective life of their intangible depreciating assets for themselves.

But some were concerned this gave business owners too much discretion.

So the latest budget for 2022-23 reversed that decision, which means the effective life of intangible assets will continue to be set by statute.

There are separate rates for the different asset classes, so ask your accountant which rate you should use.

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