fbpx
ATO temporary full expensing

TAX Savings CALCULATOR

The deadline is approaching: Temporary Full Expensing is expiring soon.

We’re in the final days to make the most of these government incentives.

Use our tax calculator below to estimate your tax deductions on capital equipment now.

↓ CALCULATE YOUR DEDUCTIONS

Unlock Maximum Tax Savings with TFE

As the end of financial year approaches, the Temporary Full Expensing (TFE) rules will be coming to an end.

TFE is the government incentive scheme for purchasing new equipment. To recap, TFE supports businesses by allowing them to claim a full deduction for the cost of eligible depreciating assets, instead of depreciating amounts spread out over future years.

If upgrading or acquiring new equipment is part of your business’ plans and strategies, then access to capital is critical, and TFE can significantly help with cashflow.

However, the TFE measure is set to expire on 30 June 2023, leaving only a limited window for practice owners to take advantage of it.

Instructions

Fill in the form fields to estimate your cashflow benefits with TFE on capital equipment.

Example

Instead of progressively depreciating a business asset over its estimated useful life (e.g. for a light therapy unit it is 10 years) and claiming a portion of that value each year as a tax deduction, you can claim the full amount in one year.

This means that for a $90,000 asset purchase, you would receive a $22,500 tax cash benefit upfront rather than $2,250 per year over the next 10 years.

Eligibility for Temporary Full Expensing:

Here are some general rules for TFE to confirm with your accountant:
  • Applies to any asset value (no cost restriction).
  • The depreciating asset can be new or second-hand.
  • If it is a second-hand asset, the business’ aggregated turnover must be under $50m.
  • The asset must be first used or installed ready for use between 7.30pm AEDT on 6 October 2020 and 30 June 2023.
  • The 100% deduction can also be claimed for improvements made to new and existing depreciating assets (i.e., second element costs) purchased within the above dates.
  • There’s no limit to the number of eligible assets a business can claim, provided they’re used for business purposes.
  • The asset is principally used within a business in Australia.
While many have called to extend the measure to alleviate rising cost pressures, no further extension was mentioned in the October 2022-23 Budget. From 1 July 2023, barring any new announcements, the accelerated deductions will conclude. Depreciating assets will need to be written off for tax purposes over their effective lives. The instant asset write-off will revert to a $1,000 cost cap, and limited to taxpayers with an aggregated turnover below $10 million.
More details available on the ATO website.
In addition to these savings, you might also be eligible for potential Loss Carry Back tax offset. 
Please note: The information on this page is general in nature and does not constitute financial advice. Please seek advice from your accountant.

Speak to an expert

For advice or enquiries about our range of equipment to benefit from these tax deductions, please contact us today.

Contact Us
Scroll to Top