COVID gifts keep on coming!

The instant asset write-off is now replaced by the Temporary full expensing initiative for business asset acquisitions between 7:30pm AEDT on 6 October 2020 and 30 June 2022

  • Businesses with an aggregated turnover of less than $5 billion can immediately deduct the business portion of the cost of eligible new depreciating assets.
  • The eligible new assets must be first held, and first used or installed ready for use for a taxable purpose.
  • For businesses with an aggregated turnover of less than $50 million, temporary full expensing also applies to the business portion of eligible second-hand depreciating assets.
  • Businesses can also immediately deduct the business portion of the cost of improvements to eligible depreciating assets

There is no capped amount on this deduction.

See more here:

https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/General-depreciation-rules—capital-allowances/Temporary-full-expensing/

General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC WM accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC WM for this purpose.