Temporary Full Expensing

Jun 20, 2023

Changes to Claiming Deductions for Assets Purchased

Under measures introduced through the pandemic, the government provided a deduction in full for depreciating assets purchased in the year they were first used, or installed ready for use by eligible businesses.

Sadly, this measure is ending on 30 June 2023. If you wish to claim temporary full expensing for the 2023 financial year end, then you must ensure that you plan accordingly to ensure that the delivery and installation of the assets can occur prior to the 30 June 2023. The mere contracting for the purchase of an asset by that date is not sufficient.

From 1 July 2023 the government has announced through the Federal Budget that the new threshold for instant asset write-offs will be $20,000 for those using simplified depreciation.  This is on a per asset basis, meaning multiple assets can be written off as long as they qualify.

For those assets which cost higher than $20,000, there will be a deduction of 15% in the first year and 30% in the following years using small business pools.

Please contact us if you need any further assistance with your particular circumstances.

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