Full Expensing of Depreciating Assets
The date by which an entity must first use or install ready for use an asset acquired by 31 December 2020 in order to claim the existing instant asset write off (IAWO) 3 has been
extended by six months to 30 June 2021. This extension does not change the requirement that the asset must be acquired by 31 December 2020.
A new measure allows businesses with an aggregated turnover of less than $5 billion to fully expense a depreciating asset (FEDA) which the entity starts to hold from 7:30pm on 6 October 2020,
provided it is first used or installed ready for use by 30 June 2022.
These rules are summarised in the table below and are explained in more detail in this comprehensive infographic.
20-10-19-the-tax-institute-full-expensing-of-depreciating-assets-infographic-final
Seeton Consulting is able to help you with determining your eligibility to apply this tax concession. Please contact us for an obligation free consult.