Temporary full expensing replaces the $150,000 instant asset write off
Temporary full expensing replaces the $150,000 instant asset write off for businesses acquiring new assets. Apart from subsidies for hiring additional younger staff (16 to 35 years) under the Jobmaker plan, the $150,000 instant asset write off has been replaced with a more generous temporary full expensing incentive for businesses acquiring assets!
Ordinarily, assets acquired for use in your business are depreciated over a period of years so that, in the main, a full tax deduction for the capital purchase is progressively obtained. Various incentives have been provided in recent years to encourage business expenditure as a boost to the economy and the “temporary full expensing” tax deduction, available for businesses until 30 June 2022, has been extended for a further 12 months in the 2021 federal budget, to 30 June 2023!
Where businesses acquire eligible depreciating assets such as plant and equipment, the business may claim an immediate outright tax deduction for the business use proportion of the expense! In the case of non-commercial passenger motor vehicles, however, “temporary full expensing” will be limited to the luxury car limit for depreciation, being $59,136 for the current 2020/2021 year.
If you want to know more about temporary full expensing or anything else from Budget 2021 then CONTACT US now at BSN & Co!