Temporary Full Expensing Rules

The temporary full expensing rules allow eligible businesses to claim a tax deduction for the full cost of eligible depreciable assets (except for motor vehicles which are subject to the current car cost limit of $64,741).

To claim the deduction in full, in the year the asset is acquired, the asset must be installed and ready for use and must be used for a taxable purpose.

Key changes

  • The temporary full expensing measures that have allowed small and medium businesses to write off the full cost of new assets, with no limit, (other than the cost limit on motor vehicles) is scheduled to end on 1 July 2023; and
  • Any business considering purchasing assets and utilising these measures prior to this date should plan now — it is important to note that to receive the deduction in the year the asset is purchased, it must be installed and ready for use.

Currently, it is not known what the depreciation write-off rules, and any potential changes will look like beyond 1 July 2023. As soon as we know, Avance will provide further communication with you.

If you have questions in relation to the above, or any other matters, please do not hesitate to contact our office on 1300 620 345.