The Morrison government is extending an investment incentive to large foreign firms that have a business based in Australia.

In last month’s federal budget, Treasurer Josh Frydenberg introduced a scheme that temporarily allows businesses with a turnover of less than $5 billion to deduct the full cost of eligible assets.

The government will now introduce legislation to expand this incentive – known as temporary full expensing – to enable more large Australian-based businesses with a track record of investing in Australia to be eligible for the measure.

“This change will mean businesses with an aggregated turnover of more than $5 billion due to the income of an overseas parent or associate will now be able to qualify provided they meet the additional investment requirements,” Mr Frydenberg said on Monday.

The measure is part of the government’s JobMaker plan to drive investment, create jobs and further support the economic recovery from COVID-19.

To qualify, an Australian-based company must have invested more than $100 million in tangible, depreciating assets in the period 2016/17 to 2019/20.