Federal Budget extension to depreciating assets

Print Friendly, PDF & Email

THE Treasurer delivered the Federal Budget on Tuesday 11 May 2021.

Temporary full expensing of depreciating assets will be extended for an additional 12 months until 30 June 2023, allowing businesses to deduct the full cost of eligible depreciable assets acquired from 6 October 2020 and first used or installed ready for use by 30 June 2023.

  • Owners should be preparing detailed listing of depreciating assets as part of the tender process thus capturing more detail and potentially more write offs at the time of completion. A detailed analysis of variations that may have happened should pick up the rest of the write offs at completion of the project.
  • There is opportunity to bring “forward” capital projects for refurbishments and upgrades.
  • Any projects that are on the drawing board at this time (for investment not trading stock) and potentially due for completion by June 23 should capture the potential write off amounts for their feasibility calculations. The cash flow benefit will significantly increase as a result of the write offs.

We at N&B are here to help.  Please do not hesitate to contact one of our trusted advisors for further assistance.

Rob Howells, Managing Director |  0437 649 082  |  rhowells@napierblakeley.com
Craig Smith, Director |  0407 371 664  |  csmith@napierblakeley.com
John Mathew, Director  |  0414 559 326  |  jmathew@napierblakeley.com
Ian Gardner, Associate Director  |  0488 225 569  |  igardner@napierblakeley.com

Alastair Walker, Director  |  0419 503 289  |  awalker@napierblakeley.com
Peter Hammond, Director  |  0419 980 901  |  phammond@napierblakeley.com
Peter Osborn, Director  |  0439 765 571  |  posborn@napierblakeley.com
Stephen Cooke, Associate Director  |  0409 228 552  |  scooke@napierblakeley.com

Adam Greene, Associate Director  |  0409 724 395  |  agreene@napierblakeley.com
Paul Cosker, Associate Director  |  0434 400 107  |  pcosker@napierblakeley.com
Gavin Peach, Associate Director  |  0412 225 781  |  gpeach@napierblakeley.com
KY Pih, Associate  |  0408 933 660  |  kpih@napierblakeley.com

Graham Rigby, Associate Director  |  0419 847 998  |  grigby@napierblakeley.com
Jorden Morris, Quantity Surveyor  |  0457 001 545  |  jmorris@napierblakeley.com

Sponsored editorial

Related posts

Tax time is here! Are you paying too much tax?

DO you own or have you bought an investment property in the past financial year? Or…  have you…
Read more

SA cuts land tax to lure Victorians

SOUTH Australia will see its most comprehensive reform to land tax in its history in the…
Read more

NSW to raise $600m a year from property developers

PROPERTY developers in New South Wales will be charged a new tax on projects that will benefit from…
Read more