Act Now to Utilise Deductions under Temporary Full Expensing
Time is running out to take advantage of deductions offered through the temporary full expensing scheme. These deductions are exclusively available for the income years 2021, 2022 and 2023, with the program expected to conclude on 30 June 2023.
Under temporary full expensing, businesses with an aggregated turnover of less than $5 billion can claim a deduction for the entire cost of eligible new assets. These assets must have been first held, used or installed, ready for use, between 6 October 2020 and 30 June 2023. In some instances, the costs of improvements made to these assets and the expenses associated with eligible second-hand assets may also be deductible.
Taxpayers have the flexibility to opt out of temporary full expensing for a specific income year. This allows them to utilise other depreciation rules for some or all of their assets. To exercise this option, taxpayers must notify the Australian Taxation Office (ATO) in their tax return, specifying their decision not to apply temporary full expensing to those particular assets.
For any assistance regarding temporary full expensing, we encourage you to reach out to SLA today. Our team is ready to provide guidance and support to ensure you make the most of this opportunity before it expires.