Temporary Full Expensing of Capital Assets
Hello, small business owners! This could be the best time for you to invest on plant and equipment for your business.
The government has introduced an incentive called the “temporary full expensing” of assets to support small businesses and encourage investment.
The temporary Full Expensing measure allows eligible businesses to claim the full cost and installation of new and second-hand assets, or improvement cost of existing assets. The asset must be first held and first used, or installed ready for use, between 6 October 2020 and 30 June 2022.
You may be able to take advantage of the incentive to reduce your tax. However, you can choose not to apply Temporary full expensing.
To help make better decisions on such matters, speak to your accountant.
For further information on eligibility criteria, restrictions and more examples, visit : https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/General-depreciation-rules—capital-allowances/Temporary-full-expensing/