The announcement of the expansion of the instant asset write-off, to 'temporary full expensing' was one of the big wins for small and medium enterprises in this year's Federal Budget.
But what does this temporary full expensing allow, how can it help your business, and what are some of the key concerns with getting it wrong?
Ernst & Young Tax Partner Tony Merlo deciphers this budget measure and the impact it can have on your business.
What is temporary full expensing?
As part of its push to help improve business’ cash flow, the Federal Government is introducing temporary full expensing of depreciable assets for businesses with turnover below $5 billion a year.
For eligible assets purchased from 6 October 2020 and first used or installed by 30 June 2022, there will be no limit placed on the value applied to full expensing.