Temporary Full Expensing: How to Make the Most of the EOFY Incentive Now

Have you been considering buying a new piece of equipment, car or other asset for your small business?

Now’s the time to act to make the most of temporary full expensing before the end of the 20/21 financial year!

In this blog, we explain:

Keep reading to learn more or get in touch with our approachable and knowledgeable team today by calling 1800 230 872 or sending us a message here.

Temporary Full Expensing: What is it?

Temporary full expensing is a tax depreciation incentive for businesses with an aggregated turnover of less than $5 billion.

It allows them to deduct the business portion of the cost of eligible new depreciating assets straight away.

Consider it an expanded version of the instant tax write off.

To be eligible for the deduction this financial year the asset must be first used or installed and ready for use, or first held by June 30.

Under this temporary incentive, which was introduced by the Federal Government to help businesses during the COVID-19 pandemic, businesses can also deduct the cost of improvements to eligible existing assets.

The deduction can be claimed by businesses when lodging their 20/21 tax return.

Utilising this incentive, means you can reinvest the cost of the asset or improvements back into your business sooner.

Find out more at the ATO website here.

What Assets are Eligible for Temporary Full Expensing?

The depreciating asset needs to meet the following requirements to be eligible:

There is no general limit on the cost of eligible assets, but certain assets – like passenger vehicles – may have specific cost limits.

Business Finance Broker Brisbane

Don’t have access to the funds right now to utilise temporary full expensing?

Finance Finance Finance can help you to secure business vehicle, equipment or truck financing to make the most of the incentive before the end of the financial year.

Not sure if this tax depreciation incentive is right for your business?

Let the qualified team at Finance Finance Finance assist.

Call today on 1800 230 872 or message us here