The temporary full expensing rule is in effect for Australian businesses until 30 June 2023.
Under the temporary full expensing rule, businesses that are eligible for the instant asset write-off can claim an immediate deduction for the full cost of eligible new or second-hand assets of any value. This rule was introduced as part of the Australian government’s economic response to the COVID-19 pandemic and is intended to encourage businesses to invest in new assets and stimulate economic activity.
YBM can supply guidance on how businesses can take advantage of this rule, such as by helping them to identify eligible assets, calculate the tax savings from claiming the deduction, and ensure they are meeting the necessary record-keeping and reporting requirements.
It would be prudent to act now if you are considering asset purchases before the end of the 2023 financial year. An asset needs to be installed, ready for use to qualify for the deduction. As there may be a considerable lead time to receive your asset, it is better to act sooner rather than later to ensure you receive your asset before 30 June 2023.
It’s important to note that tax rules and regulations can change over time, so if you are seeking up-to-date information on temporary full expensing or any other tax-related matters, it’s best to consult with a qualified tax professional such as YBM.
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