Federal Parliament has passed legislation to extend the temporary full expensing measure introduced in the 2020-21 budget by a further 12 months. Rather than ending on 30 June 2022, eligible businesses will now be able to take advantage of the incentive until 30 June 2023.
This will allow businesses with aggregated annual turnover or total income of less than $5 billion to deduct the full cost of eligible depreciable assets acquired from 7.30 pm on 6 October 2020 and first used or installed ready for use by 30 June 2023. All other elements of the temporary full expensing measure remain unchanged, including eligibility.
The Assistant Treasurer the Hon. Michael Sukkar stated in his parliamentary speech that this measure will continue to support our economic recovery by encouraging businesses to make further investments. The time limited nature of the measure provides a strong incentive to bring forward investment projects before it expires.
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