As part of the federal government’s response to the widespread economic impact of COVID-19, the 2020-21 Budget allows provision for eligible business’s to claim a deduction for the full cost of certain depreciating assets acquired and used by the businesses.

The measure is known as ‘temporary full expensing’ and applies to eligible assets acquired from 7.30pm AEDT on 6 October 2020 (2020 Budget time) and first used or installed by 30 June 2022.

To be eligible the business must satisfy the small business entity definition and have an aggregated turnover of less than 5 billion dollars.

The eligible asset can be new or second hand.

For second hand assets to be eligible assets the businesses aggregated turnover must be 50 million dollars or less.

There are some excluded assets from these provisions.

If you would like further information regarding the temporary full expensing measures and how this can be relevant to your business, please contact Fuse Accounting.

Further information can be found at https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/General-depreciation-rules—capital-allowances/Temporary-full-expensing/

Elliot Johnson

Fuse Accounting

This blog is intended to give an overview of the taxation issues involved and does not constitute tax advice. It is important that you consider appropriate tax advice that suits your circumstances.

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