eligible assets for temporary full expensing Page 422

Temporary full expensing let businesses immediately deduct the cost of most eligible depreciating assets, but only for assets acquired after 6 Oct 2020 and first used or installed by 30 June 2023.

Broadly, new assets were eligible for businesses with aggregated turnover up to roughly $5b, while second‑hand assets were eligible if turnover was under about $50m.

Typical eligible kit included plant, machinery, tools, computers and vehicles used mainly in Australia for business; passenger cars were capped by the annual car limit, and capital works (buildings/structural improvements) were out.

Also excluded: assets not located in Australia and certain pooled items (like low‑value or software development pools).

The measure has ended; current instant asset write‑off rules are different, so check the latest ATO guidance or talk to your accountant before spending like a sailor on shore leave.