If you have business assets which are expected to decline in value over time, such as machinery, motor vehicles, furniture, computers and phones, itâs likely that you would have claimed a depreciation expense.
So, whatâs 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 youâre calculating depreciation of assets for the 2020â21, 2021â22 and 2022â23 financial years.
You can find out more about temporary full expensing and instant asset write-off at ato.gov.au/depreciation.
Remember, registered tax agents and BAS agents can help you with your tax.
Â
Last modified: 17 Apr 2023
QC 72248
The low down on depreciation | Australian Taxation Office (ato.gov.au)