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.