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dc.contributor.authorAllen, Christina
dc.date.accessioned2022-12-14T12:11:52Z
dc.date.available2022-12-14T12:11:52Z
dc.date.issued2022
dc.identifier.citationAllen, C. 2022. The Path to Bifurcated Tangible Asset Depreciation Regime in Australia. Australian Tax Review. 51 (4): pp.343-363.
dc.identifier.urihttp://hdl.handle.net/20.500.11937/89826
dc.description.abstract

More than two decades after their adoption, the rationale the generous depreciation concessions for small business remains unclear. Several after-the-fact explanations have been suggested, with the most common being a form of compensation for the proportionally high tax compliance burden borne by small businesses. It is, however, difficult to see how accelerated depreciation can provide appropriate offsets for compliance costs, particularly when the benefit is limited to profitable small businesses acquiring tangible property. Moreover, the emphasis on subsidising the acquisition of tangible assets seems misdirected given the 21st century trend towards deriving value from intangible assets and human capital. The small business depreciation system ultimately remains a concession in search for a plausible tax policy basis. This article provides a brief history of the Australian depreciation system to document how the small business depreciation concessions were adopted and how they have evolved to date, beginning with the legislative amendments that consolidated fragmented depreciation rules away from industry-specific tax expenditures in the 1990s. The article explains that the policy of concessions without logical policy objectives continues with more recent ad-hoc concessions, including the temporary COVID-19 measures.

dc.publisherThomson Reuters
dc.titleThe Path to Bifurcated Tangible Asset Depreciation Regime in Australia
dc.typeJournal Article
dcterms.source.volume51
dcterms.source.number4
dcterms.source.startPage343
dcterms.source.endPage363
dcterms.source.issn0311-094X
dcterms.source.titleAustralian Tax Review
dc.date.updated2022-12-14T12:11:51Z
curtin.note

Reproduced with permission from the publisher.

This article was first published by Thomson Reuters in the Australian Tax Review and should be cited as Allen, C., The Path to a Bifurcated Tangible Asset Depreciation Regime in Australia, 2022, 51, Aust. Tax Rev., 343.

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curtin.departmentCurtin Law School
curtin.accessStatusOpen access
curtin.facultyFaculty of Business and Law
curtin.contributor.orcidAllen, Christina [0000-0001-6454-6131]


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