The Australian Government passed a new law in backing business investment in which businesses with an aggregated turnover of less than $700 million are able to accelerate their depreciation deductions on the purchase of certain new depreciable assets. This applies to eligible assets acquired and first used or installed ready for use during the financial year 2018-2019.

Figure 3: Loanable funds markets (Diagram E & F)

Diagram E Diagram F Interest | Line 1 Interest rate Line 2 rate Line 1 R* R* R# R# Line 2 Line 3 Line 3 Q* Q# Loanable funds Q* Q# Loanable funds