Are you looking to maximize your business’s tax deductions? If so, act now! The clock is ticking on the opportunity to claim deductions under the government’s temporary full expensing scheme.
This temporary measure has been put in place to provide businesses with an aggregated turnover of less than $5 billion with tax incentives to invest in new assets during the 2021, 2022 and 2023 income years. The scheme is set to come to an end on 30 June 2023.
Under this scheme, businesses can generally claim a deduction for the full cost of eligible new assets first held, used or installed ready for use between 6 October 2020 and 30 June 2023. Additionally, businesses may also be able to claim the costs of improvements to those assets and the cost of eligible second-hand assets.
It’s important to note that taxpayers have the option to opt-out of the temporary full expensing scheme for some or all of their assets. If you choose to do so, you can claim a deduction using other depreciation rules. To do this, simply notify the ATO in your tax return that you have chosen not to apply temporary full expensing to those assets.
As the 30 June 2023 deadline fast approaches, it’s crucial to act now if you wish to take advantage of this tax incentive. If you require any assistance or have any questions regarding temporary full expensing, our office is here to help. Contact us today to ensure you don’t miss out on these valuable tax deductions.
