Maximise your Tax Deductions: ATO’s Temporary Full Expensing Incentive 

Business rejoice! 

The ATO has a new tax incentive that could provide your business with immediate relief for the cost of your business assets from the past years. Temporary full expensing is a new incentive that allows eligible businesses to deduct the full cost of eligible depreciating assets upfront. Simply put, you can now claim for an immediate tax deduction for assets you’ve purchased for your business.

Check out if your business qualifies for this incentive:

• Your business has an aggregated turnover of less than $5 billion
• Your corporate entity meets the alternative income test

Specifically for income from the years 2020-2021, 2021-2022, 2022-2023, if you are eligible you can claim in your tax return a tax deduction for the cost of:

• Eligible new assets, first used or installed ready to use for a taxable purpose between 7.30pm AEDT on 6 October 2020 and 30 June 2023
• eligible second-hand assets where both:
  • the asset was first held, first used or installed ready for use for a taxable purpose between 7.30pm AEDT on 6 October 2020 and 30 June 2023
  • the eligible entity’s aggregated turnover is less than $50 million
• improvements incurred between 7.30pm AEDT on 6 October 2020 and 30 June 2023 to      
  • eligible assets
  • existing assets that would be eligible assets except that they are held before 7.30pm AEDT on 6 October 2020

In conclusion, the ATO’s temporary full expensing incentive is an exciting opportunity for eligible businesses to reduce their tax liability and maximise cash flow. Take advantage of this incentive and your business can claim an immediate tax deduction for eligible depreciating assets, which will indefinitely provide a significant boost to your bottom line via tax savings.

Still not sure if your business is eligible for this incentive? Reach out to Aero Accounting Group  today to learn how we can help you make the most of the ATO’s temporary full expensing incentive and take your business to the next level. Every cost saved counts when it comes to your business’s success, and our team of experienced accountants can help you identify eligible assets, ensure compliance with ATO regulations, and maximise your tax savings to help you achieve your goals.