360Private

The 2020 – 2021 Federal Budget announced significant temporary changes to the tax rules surrounding depreciating assets. These new, full expensing rules apply to businesses with a turnover of up to $5 billion. An immediate 100% deduction can be taken for eligible depreciating assets incurred from 6 October 2020 until 30 June 2022.

Which assets are eligible?

A depreciating asset qualifies for full expensing if after 6 October 2020, and on or before 30 June 2022 the entity:

  • Starts to hold the asset; and
  • Starts to use the asset, or has it installed ready for use for a taxable purpose.

An asset is not eligible for full expensing if:

  • The capital allowances’? rules in Division 40 do not apply (i.e. if it is trading stock, a capital works asset or a CGT asset);
  • The asset is not used or located in Australia;
  • The expenditure is allocated to a low-value pool or a software development pool; or
  • The expenditure is deductible to the entity or another entity under the primary production depreciation rules in Subdivision 40.

There are several exceptions around these general rules and your Tax Specialist at 360Private will be happy to assist you in defining your Business eligibility, to ensure that your Business receives its full deduction.

Recent posts

  • New Support Package for businesses impacted by COVID-19 restrictions

    Written by 360Private

    Published: 14 January 2022

    New Support Package for businesses impacted by COVID-19 restrictions. The South Australian Government has introduced various support packages for SA businesses impacted by the health restrictions put in place from 27th December 2021. New grants are available to eligible businesses across the state’s tourism, hospitality, gym/fitness and major event industries, as well as a general Business Hardship Grant.
  • Director Identification Number (Director ID)

    Written by 360Private

    Published: 05 November 2021

     Director Identification Number Following the recent introduction of Director Identification Number (Director ID) measures, you will be required to register for a Directors ID if you’re a Director of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Island corporation. The new Australian Business Registry Services (ABRS) is responsible for administering the initiative. This Director ID is a unique identifier that will be given to each individual director, or any new directors, to verify their identity. The Director ID is a 15-digit number will assist in preventing the use of false or fraudulent identities, as well as making it easier to trace Director relationships across multiple companies.
  • Important Superannuation Changes for Employers

    Written by 360Private

    Published: 08 October 2021

    Important Superannuation Changes for Employers From 1 November 2021, if you have new employees starting in your business, you may have an extra step to take to comply with choice of fund rules if the employee does not choose a super fund. You will now need to request the employee’s ‘stapled super fund’ details from the Australian Tax Office (ATO). A stapled super fund is an existing super account which is linked, or 'stapled', to an individual employee so that it follows them as they change jobs. These new changes aim to reduce account fees by stopping new super accounts being opened every time an employee starts a new job.
  • New Financial Support Package for SA Businesses

    Written by 360Private

    Published: 16 September 2021

    On Monday 9 August 2021, the Australian Government and Government of South Australia announced a new $3,000 cash grant program for businesses and $1,000 for sole traders in eligible industry sectors - such as hospitality, creative venues and artists, tourism, gyms and transport. South Australian businesses that continue to be significantly impacted by ongoing COVID-19 density and trading restrictions may be eligible for additional financial support. Businesses based in the Adelaide CBD may be eligible for an additional $1,000, acknowledging the significant decrease in city foot traffic.
  • Export grants on offer under revised Govt scheme

    Written by 360Private

    Published: 31 August 2021

    The State Government is offering up to $200,000 in grants to small and medium-sized businesses looking to expand into overseas markets, in a revamp of the SA Export Accelerator (SAEA) Program. First introduced in August 2018, the program has undergone a review, with the funding categories revised in a bid to give a greater pool of small to medium sized businesses access to the grants. New activities within the funding stream have been introduced to support exporters that are seeking entry to new markets. Due to changes in the criteria, companies that were once unable to apply may find that they can now access funding. The programme is administered by the Department of Trade and Investment and provides grants for activities such as marketing and promotion, freight and logistics, export training and market access support. To be eligible, businesses applying must be from one of the nine Growth State priority sectors, which are:

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