Are you thinking about upgrading your equipment or expanding your fleet? Have you had enough of transport hire? is it time for a new vehicle purchase? If that time for you is now, great incentives are still available. Find out if your business is eligible and how to claim today.
One of these incentives is the temporary full expensing scheme which supports businesses and encourages investment. It is a tax incentive introduced by the Australian Government designed to bring forward spending and help businesses recover from the impacts of COVID-19.
Find out if your business is eligible and how to claim today.
What is temporary full expensing?
Temporary full expensing is a government incentive that allows eligible businesses to deduct the full cost of any eligible depreciating asset, of any value, in the year they are first used or installed ready for use.
Is your business eligible to benefit from the temporary full expensing scheme?
Approximately 3.5 million business will have access to the scheme (99% of business), with only the largest businesses in Australia being excluded.
- First use or install the asset between 7:30pm 6th of October 2020 and 30th June 2023
- Have an annual turnover of up to $5 Billion.
- It can be a new or second-hand asset.
- The asset must be installed and ready to use in the financial year that you wish to claim it in.
- The asset value is uncapped, and the scheme can be used multiple times.
What can I claim?
Providing they meet the existing criteria for depreciable assets, all new assets are eligible.
You can claim the cost of any asset required for your business, including but not limited to the following:
- Commercial vehicles
- Business vehicles
- Heavy Machinery
- Commercial equipment
- Computers and office equipment
- Farm Machinery
Are there any exclusions?
There are a few types of assets that are excluded from the scheme, these include capital works, horticultural plants, assets allocated to a software development pool, buildings, and any other intangible assets such as goodwill and customer lists.
What does it allow my business to do?
Essentially, the scheme is a greatly expanded accelerated depreciation program, allowing businesses to claim a tax deduction for the total value of a purchase after its use as opposed to claiming the depreciation amounts over several years, with the aim to get businesses to bring forward spending on new assets and in so doing, reducing the amount of tax they pay.
If you require assistance obtaining finance to take advantage of the temporary full expensing scheme, contact our team of finance specialists today on (03) 5223 3453 who will be able to assist you in finding the best facility for your needs and budget.