How you can benefit from the Temporary Full Expensing Scheme
How you can benefit from the Temporary Full Expensing Scheme
The temporary full expensing scheme is still available, and the time is right to take advantage of the scheme ahead of tax time. The scheme will be available until 30th June 2023. This will allow eligible businesses to claim an immediate deduction for costs of assets used for business purposes, therefore reducing the amount of tax they need to pay. Reducing the amount of tax your business is paying will support and maintain a healthy growing business.
How can your business benefit from the scheme?
The temporary full expensing scheme has been created to allow businesses to claim these deductions in one lump sum as opposed to claiming them over several years in depreciation amounts. The aim is to bring forward spending on new assets while reducing the amount of tax paid.
Reducing the amount of tax your business is paying will have a positive impact on your cash flow while helping to support and maintain business growth.
What can I claim?
There are no limits on how many assets you can claim. This is a great opportunity to upgrade equipment, machinery, and vehicles as you can deduct the full cost.
You can also fully deduct the cost of improvements to existing eligible depreciating assets made during this time.
Eligible assets are items that lose value and depreciate over time, these items include but are not limited to the following:
- Tools
- Equipment
- Business vehicles
- Commercial vehicles
- Computers
- Office equipment
- Farm machinery
- Manufacturing equipment
Who is eligible?
- Any business with an aggregated turnover of less than $5 billion but over $50 million can claim a full deduction for new assets only
- Turnover of less than $50 million can claim the full amount of both new and used assets
- Assets must be first held, used, or installed ready for use for a taxable purpose between 6/10/2020 and the 30/06/2023 be located in Australia, and principally used in Australia for business purposes
It is important to keep all purchase records made for your business under the scheme and also make sure you have access to funds needed to purchase new assets.
If your business is ready to take advantage of the temporary full expensing scheme and requires assistance obtaining finance, simply call 1300 4 MORRIS and speak to one of our finance specialists to see what we can do for you.
