The benefits of the Temporary Full Expensing Scheme

Have you been thinking about taking advantage of the temporary full expensing scheme but are unsure if your business is eligible?

If so, this Government incentive has been designed to support businesses and encourage investment. The scheme allows businesses to claim an immediate deduction for the business portion of the costs of an asset in the year It is first used or installed ready for use.

The 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.

Who is eligible?

If your business has an annual turnover of under $5 billion but over $50 million, you can claim a full deduction for new assets only. If your turnover is less than $50 million, you are eligible to claim the full amount of both new and used assets.

What can I claim?

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

Is my asset eligible?

Not sure if your business is eligible for the temporary full expensing scheme? Here are some of the key details you need to know.

Have an annual turnover of up to $5 billion
First use or install the asset between 7:30PM 6^th of October 2020 and 30^th of June 2023
It can be a new or secondhand asset
The asset value is uncapped and the scheme can be used multiple times
The asset must be installed and ready to use in the financial year that you wish to claim it in
The assets you can claim include business vehicles, construction equipment, light & heavy commercial vehicles, computers & office equipment and more