Using Australian business tax returns and investment data, we estimate the impact of several investment incentives that have been implemented through the tax system over the past decade. The incentives used in Australia have included extra deductions for investment expenditure as well as instant asset write off for qualifying businesses. We exploit exogenous changes in qualifying thresholds to identify the impact of these policies on both the intensive and extensive investment margins. Some early results are presented.

Nu Nu Win is a 2021 Sir Roland Wilson Scholar from the Department of Treasury with experience across tax policy, legislation and economic modelling.