If you have business assets which are expected to decline in value over time, such as machinery, motor vehicles, furniture, computers and phones, it’s likely that you would have claimed a depreciation expense.
So, what’s the difference between temporary full expensing and instant asset write-off?
Temporary full expensing allows eligible businesses to claim an immediate tax deduction for the business portion of the cost of an eligible asset, in the year it is first held, first used or installed ready for use.
Instant asset write-off also allows eligible businesses to claim an immediate deduction, but the thresholds and date range for when an asset is first used, or installed ready for use, are different.
You can only use temporary full expensing if you’re calculating depreciation of assets for the 2020–21, 2021–22 and 2022–23 financial years.
Remember, Beck Partners – Chartered Accountants can help you minimise your tax.
Next Steps
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