temporary full expensing examples Page 445

Temporary full expensing lets eligible Aussie businesses deduct 100% of the cost of qualifying assets first used or installed between 6 Oct 2020 and 30 June 2023—straight to zero, like your willpower in a tool shop.

• Buy a $75,000 1‑tonne ute in May 2023 and put it straight to work: full deduction in 2022–23 (utes over 1 tonne aren’t capped by the car limit).
• Install a $120,000 CNC machine in March 2023: fully expensed that year instead of dribbling depreciation for ages.
• Pick up a $70,000 passenger SUV in June 2023: deduction is capped at the ATO car cost limit for that year (around $64k), with the rest not claimable via depreciation.
• Add a $15,000 workshop fit‑out in April 2023: improvements qualify if first used by 30 June 2023 and can be fully expensed.

Normal rules still apply (business-use percentage, GST, and luxury car limits), so have a chat with your accountant before you go shopping.