The Rubber Company Pty Ltd manufactures tennis balls. 1 January 2016 Rubber Co purchased a new machine for $1.1 million which it used to produce the tin cans in which it packages the tennis balls. At the time of acquiring the machine, Rubber Co estimated that the machine would have an effective life of 10 years before requiring replacement.

Subsequently, on 1 January 2021, as a result of new technology, a better machine became available and rubber Co decided to sell the original machine for $330,000 and purchase a new machine for $2.2 million.

Required:

Calculate the potential deductibility of the above items for Rubber Co, noting they are not a small business entity. Show all calculations and refer to relevant legislation to support your answer. What are some of the tax incentives from a planning point of view if Rubber Co was an SBE?