{"id":85016,"date":"2021-05-29T01:23:45","date_gmt":"2021-05-28T15:23:45","guid":{"rendered":"https:\/\/itt.com.au\/?p=85016"},"modified":"2021-05-29T01:23:45","modified_gmt":"2021-05-28T15:23:45","slug":"australian-businesses-benefit-from-temporary-full-expensing","status":"publish","type":"post","link":"https:\/\/itt.com.au\/australian-businesses-benefit-from-temporary-full-expensing\/","title":{"rendered":"Australian businesses benefit from temporary full expensing"},"content":{"rendered":"\n

In what has been described as the \u201clargest set of investment incentives\u201d ever offered by treasurer Josh Frydenberg, businesses are able to write off the full value of any assets they purchase until June 2022<\/a>. <\/p>\n\n\n\n

Temporary full expensing will cost the budget $26.7bn and $4.9bn over the next four years in a bid to create 50,000 jobs and are supplemented by a further $2bn on research and development tax concessions.<\/p>\n\n\n\n

The shadow treasurer, Jim Chalmers, said Labor was \u201cinclined to support\u201d the business tax measures but would examine the detail to \u201cmake sure that\u2019s the right and responsible way to spend so much money.\u201d<\/p>\n\n\n\n

Earlier, in his budget speech, Frydenberg said with eight out of 10 jobs being in the private sector it was the \u201cengine of the Australian economy\u201d \u2013 but during the COVID-19 crisis it \u201cneeds a kick-start.\u201d<\/p>\n\n\n\n

Who is eligible?<\/strong><\/p>\n\n\n\n

Businesses with a turnover of less than $5bn \u2013 all but the top 1% \u2013 are able to deduct the full cost of capital assets purchased and first used or installed by 30 June 2022. The measure expands the popular instant asset write-off, previously only available to small and medium businesses.<\/p>\n\n\n\n

Small and medium businesses will also be able to apply \u201cfull expensing\u201d to second-hand assets; businesses earning $50m to $500m will be able to do so for assets of less than $150,000.<\/p>\n\n\n\n

Frydenberg said the measure was a \u201cgame-changer\u201d that would \u201cunlock investment\u201d and \u201cdramatically expand the productive capacity of the nation.\u201d<\/p>\n\n\n\n

To be eligible for temporary full expensing, the depreciating asset must be:<\/p>\n\n\n\n