• Home
  • COVID-19
  • Businesses with less than $5b turnover can use temporary full expensing

[adning id=”12070″]

[adning id=”12070″]

Businesses with less than $5b turnover can use temporary full expensing

On 6 October 2020, the government announced the JobMaker Plan to support businesses. One of these incentives is temporary full expensing.

In their 2020–21 and 2021–22 income years, eligible businesses can immediately deduct the:

  • business portion of the cost of eligible new depreciating assets
  • cost of improvements to existing assets.

If your business’s aggregated turnover is less than $5 billion, you can use temporary full expensing.

If you can claim an immediate deduction for an asset under temporary full expensing, you cannot claim it using other depreciation rules (such as backing business investment – accelerated depreciation).

If temporary full expensing does not apply to you, you may be able to claim a deduction under backing business investment – accelerated depreciation or instant asset write-off.

If you have a company, you may make a tax loss in an income year as a result of claiming an immediate deduction under temporary full expensing. If you make a tax loss and you’re eligible, you can choose to either:

  • carry your loss forward to use it to offset its future income
  • have a refundable tax offset under loss carry back.

You claim temporary full expensing in your tax return:

  • We’re updating 2020–21 tax return forms to ensure they are ready for 1 July 2021.
  • If your business is going to lodge your 2020–21 company tax return before 1 July 2021, we are working through how you can make a temporary full expensing claim.

We will update our web content with more information on how to claim.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email
Share on print
Print

Leave a Comment

Your email address will not be published. Required fields are marked *

SUBSCRIBE FREE
SME NEWS BRIEFS

Get breaking news delivered
  • This field is for validation purposes and should be left unchanged.

RECEIVE GOVT GRANT OF $10K to $250K*.

Austrade Approved Business Events
AVAILABLE NOW APPLY BEFORE 30th MARCH 2021 (Condition apply)

  • ABF Events are approved and listed below have been certified by Austrade on the Schedule of Approved Business Events.
  • This allows exhibitors, sponsors, delegates and partners to participate in the Business Events Grant Program. Note event bookings need to be confirmed ASAP to participate in the grant program
  • The program provides 50% rebate (based on a minimum spend of $20k) for approved items including ABF event-media packages, exhibition stands, corporate function tables, delegate registrations.
  • Govt Grant applications are now open until the 30 March. Please contact ABF to discuss how we can assist, we have experts to assist grant applications.
  • Grant funding will cover up to 50% of eligible expenditure incurred in participating at pre-approved business-to-business events as buyers or sellers during the 2021 calendar year.  All grant applications must be submitted for approval via the following link: https://business.gov.au/grants-and-programs/business-events-grants
  • For further information please see this fact sheet.