What can the Temporary Full Expensing of Capital Assets be used for?
The Temporary Full Expensing of Capital Assets scheme applies to multiple assets, both new and second hand. Eligible assets are items that have a limited life expectancy and will depreciate in value over the time they are used. For example, tools, equipment, computers, laptops, tablets, office equipment and motor vehicles.
If your business has an aggregated turnover of less than $5 billion, you are eligible. Corporate tax entities that don’t meet the $5 billion aggregated turnover test can access the Temporary Full Expensing of Capital Assets scheme if they satisfy an alternative income test.
The depreciating asset must also support the following to be eligible:
new or second-hand (if it is a second-hand asset, your aggregated turnover is below $50 million)
first held by you at or after 7.30pm AEDT on 6 October 2020
must be installed and ready for use by your tax return (2020-21 or 2021-22)
In addition to claiming a deduction for the business portion of the cost of an asset, you can also claim a deduction of the cost of any improvement to an eligible asset if occurred before 30 June 2022. This also includes existing assets that you had before 7.30pm AEDT on 6 October 2020.
Considering purchasing a truck?
Trucks come under the Temporary Full Expensing list of eligible assets as motor vehicles. Hino trucks are designed specifically for work, which means they are all eligible assets if your business has a turnover of less than $5 billion.
You might be considering to upgrade or expand your fleet, and by applying for the deduction only makes smart business sense and fuels your future growth.
To make the most of the benefits of Temporary Full Expensing of Capital Assets scheme, we recommend seeing a financial advisor and visiting the ATO website.
Contact the team at Milne Bros Hino for more information