Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use for a taxable purpose.

You may be eligible for temporary full expensing if you are one of the following:

  • a business with an aggregated turnover of less than $5 billion
  • a corporate tax entity that meets the alternative income test.

Points to consider;

  • Be aware that 30 June 2023 is the last day businesses can claim temporary full expensing of depreciating assets.
  • Businesses with an annual turnover up to $5 billion can deduct the full cost of eligible assets that are acquired and first used by 30 June 2023.
  • There is no limit to the amount or number of assets a business can claim.
  • New and second hand assets are eligible.
  • Assets will need to be first used or installed ready for use on or before 30th June 2023, so be careful of lead times associated with purchasing new assets.

For further details head to the ATO or contact Mayberry Meldrum Anderson on 02 6672 4044