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.