Take Advantage of ATO's Temporary Full Expensing & Save on Your Business Taxes Before it Expires
Updated: Sep 15
Last Chance for Business Tax Savings: Temporary Full Expensing Ends 30 June 2023
As a business owner, you're always seeking smart strategies to boost your bottom line. One powerful opportunity that's about to disappear is the Australian Taxation Office’s (ATO) temporary full expensing scheme, ending 30 June 2023.
What is Temporary Full Expensing?
Temporary full expensing is a tax break introduced to support Australian businesses during the COVID-19 recovery. It enables eligible businesses to immediately deduct the full cost of eligible depreciating assets in the year they’re first used or installed, instead of claiming deductions over several years.
This means faster tax savings—especially helpful if you're purchasing high-value assets like machinery, computers, or vehicles.
Who’s Eligible?
This scheme is open to businesses with an aggregated turnover of less than $5 billion. To qualify, assets must:
Be acquired from 6 October 2020
Be installed and ready for use by 30 June 2023
What Assets Are Included?
Eligible assets can include:
Plant and equipment
Computers, laptops, and software
Office furniture and fittings
Motor vehicles (subject to car cost limits)
Manufacturing equipment
Note: The following assets are excluded: Leased assets Second-hand assets for some businesses Buildings and structural improvements Intangible assets like trademarks and goodwill
How Does It Work?
Let’s say you purchase new machinery for $100,000 in May 2023 and have it installed by June. Under temporary full expensing, you can claim the full $100,000 deduction in your 2022–23 tax return—rather than spreading the deduction across future years.
Why It Matters
Immediate deductions mean lower taxable income, leading to reduced tax liabilities and improved cash flow. For businesses investing in growth, this is a timely and powerful tax strategy.
But it’s a limited-time opportunity. From 1 July 2023, standard depreciation rules will return. You’ll no longer be able to claim the full cost upfront.
Need Help Making the Most of It?
The clock is ticking. To benefit from this scheme, assets must be ready for use by 30 June 2023.
Get in touch with Dolman Bateman today. We’ll help you assess eligibility, ensure compliance, and strategically invest for maximum tax benefit.
📞 Call us on 02 9411 5422
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. All content relates to the current financial year only. Future changes to tax laws, thresholds or administrative requirements may affect the accuracy or relevance of this information, so you should always confirm that the guidance remains current. While every effort has been made to ensure accuracy at the time of publication, Dolman Bateman accepts no responsibility or liability for any loss or damage arising from reliance on this information. You should seek professional advice tailored to your circumstances before making any financial or tax decision.
