The end of the financial year is fast approaching. For many businesses, there's now an opportunity to use up the yearly capital expense budget and finalise their expenses before 30 June 2021.
To help businesses recover from the impact of COVID-19, the government has updated the instant asset write-off conditions for eligible businesses and has introduced temporary full expensing. This is a great time to invest in your workspace.
What does it mean?
Temporary full expensing allows eligible businesses to deduct the full cost of eligible depreciating assets of any value. This applies in the year they are first held, used, or installed ready for a taxable purpose. The cost of improvements to existing eligible depreciating assets made during this period can also be fully deducted.
Any business with an aggregated turnover of less than $5 billion is eligible.
Your business can immediately deduct the business portion of the cost of eligible new depreciating assets. This also applies to the cost of improvements to existing assets in their 2020-21 and 2021-22 income tax returns.
For businesses with a turnover of less than $50 million, temporary full expensing also applies to eligible second-hand assets.
If you require a new office fit-out or new office furniture, now is a great time to take advantage of this incentive. Contact us today to get a quote.
For more information, visit the Australian Taxation Office website or speak to your accountant.
Sources:
https://www.smallbusiness.wa.gov.au/blog/temporary-full-expensing-explained
https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Temporary-full-expensing/
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