Temporary Full Expensing: A Time-Limited Deduction for Businesses
Eligibility Criteria, Opt-Out Provisions, and Impending Deadline for the Tax Benefit
Deductions under ‘temporary full expensing’ are only available in the 2021, 2022 and 2023 income years, and are expected to come to an end on 30 June 2023.
Under temporary full expensing, businesses with an aggregated turnover of less than $5 billion can generally claim a deduction for the full cost of eligible new assets first held, used or installed ready for use between 6 October 2020 and 30 June 2023, as well as (in some circumstances) costs of improvements to those assets and also the cost of eligible second-hand assets.
Taxpayers can choose to opt out of temporary full expensing for an income year for some or all of their assets, and claim a deduction using other depreciation rules, by notifying the ATO in their tax return that they have chosen not to apply temporary full expensing to those assets.
Contact Omnis Group’s Accountants in Perth this tax time if you require any assistance in relation to temporary full expensing – phone our team on 08 9380 3555.
