Australian Treasurer Josh Frydenberg has announced plans to expand access to the instant asset write-off (full expensing). The instant asset write-off was recently expanded to allow businesses with turnover up to AUD 5 billion to deduct the full cost of eligible depreciable assets in the year they are installed. For companies that are part of a group, the turnover limit is determined based on group turnover, which limits access.
In order to expand access to companies that are excluded due to being part of a global group with high turnover, the government is planning to introduce legislation providing for an alternative test to qualify for the instant asset write-off. The test includes that companies could be eligible if they have:
In addition, businesses will be allowed to opt out of temporary full expensing and the backing business investment incentive on an asset by asset basis. This change will provide businesses with more flexibility in respect of these measures, removing a potential disincentive for them to take advantage of these incentives.
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.