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Mark Jeffreson
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Hi HG

This is a government initiative to accelerate depreciation rates to encourage investment in business assets. The effect is to weight depreciation charges for tax purposes toward the earlier part of the useful lives of those assets.

There is no scientific or mathematical basis for the accelerated allowance…it’s just a tax concession based on the assumption the decline in value of a depreciating asset will be greater in the first year of use, and lesser in subsequent years.

Cheers
Mark