Temporary immediate full expensing of assets means businesses can immediately deduct the purchase cost of eligible new and second-hand* assets.
Is your business eligible to immediately deduct assets?
Businesses that are eligible need to have an aggregated turnover of less than $5 billion.
For businesses with an aggregated turnover of less than $50 million, temporary full expensing also applies to second-hand depreciating assets.
What are eligible assets?
To be eligible for temporary full expensing, the depreciating asset must be:
- New or second-hand**
- First used or installed ready for use by you for a taxable purpose# before 30th June 2022
For a simple explanation to the new depreciation of asset rules, please refer to the flowchart below. For any other questions specific to your circumstances, please contact one of our accountants to discuss.
Expensing / depreciation of assets for businesses under $50m turnover
How can Walsh Accountants help you?
Our team of Accountants are specialists in Business and Entrepreneurial Support providing sound and sensible advice; assisting our clients to never pay more tax than they need to.
If you are interested in working with our team to conduct a Tax Planning review to have you ready for the new financial year, contact us today for a complimentary discussion based on your personal circumstances.
* T&C’s apply
** if the asset is second-hand, your aggregated turnover is below $50 million
# such as a business purpose
Content in this article is general in nature and should not be taken as financial advice. If you are interested in this tax planning strategy, please contact our office to speak with one of our Accountants before proceeding any further.