temporary full expensing

Temporary full expensing is the Australian government's way of telling businesses, "Spend now, and we'll give you a tax break." It allows eligible businesses to immediately deduct the full cost of eligible depreciable assets, like machinery and equipment, rather than depreciating them over years. Introduced as a stimulus measure, it's designed to boost investment and cash flow.

Key points:

• Applies to new assets first held or installed from 6 October 2020 to 30 June 2023.
• Eligible businesses with aggregated turnover under $5 billion can claim.
• Aim: spur economic activity during tough times.

Check official ATO documentation or ServiceCentral for the nitty-gritty details and eligibility criteria, lest you fall foul of the taxman.