Tax Depreciation Incentives
There has never been a better time to claim tax deductions for new depreciable asset purchases than now! Temporary Full Expensing (TFE) measures are currently in effect until 30 June 2022 (with legislation pending to extend the date until 30 June 2023) which means in most cases a business will be able to claim a 100% tax deduction on purchase of an asset.
General rules
Generally, businesses with an aggregated turnover of less than $5 billion can claim a tax deduction for the business portion of the cost of assets first held at or after 7.30pm AEDT on 6 October 2020.
On face value this measure can seem very simple, however there are some intricacies that deem certain assets ineligible for TFE. Below is a summary of some of the minutiae of the measures