One of the measures announced in the 2020-21 Budget was the temporary immediate expensing of depreciating assets.
These rules allow businesses with an immediate deduction of 100 per cent of the cost of eligible depreciating assets.
When is the eligibility period?
The rules apply from budget night 6 October 2020 and will run through until 30 June 2022.
Which assets are eligible?
To make a claim the business must have purchased the asset and either start to use the asset or have it installed ready for use. For example to claim in the current financial year you will need to do so before 30 June 2021.
The rules only apply to assets in Australia that are used in carrying on a business.
Second hand assets can potentially qualify for these rules, and a small business entity that has existing assets that has been previously pooled may also be able to be written off at the end of the 2021 and 2022 income years.
Leased assets and capital works are excluded and subject to depreciation.
How can Walsh Accountants help you?
As business and tax specialists, we have taken the time to educate ourselves and understand all the elements to the budget announcements. This means we are the best placed to assist you to take advantage of these initiatives to support and manage your business.
If you would like some assistance in implementing any of the budget strategies for your business, or would like to understand more about how they can be of benefit to you, contact us today to speak with one of our accountants.