Also called: TFE, Full expensing
Temporary full expensing
Temporary full expensing was a time-limited Australian tax measure that allowed eligible businesses to immediately deduct the full cost of eligible depreciating assets without a cost threshold. It applied to assets first used or installed ready for use within a defined period that has since ended.
What is a temporary full expensing?
Temporary full expensing was a time-limited Australian tax measure that allowed eligible businesses to immediately deduct the full cost of eligible depreciating assets without a cost threshold. It applied to assets first used or installed ready for use within a defined period that has since ended.
Example
A business that acquired a $250,000 machine during the eligible period could claim the full cost in that year rather than depreciating it.
Why it matters
It no longer applies to new purchases, so any planning based on it needs to be checked against the current rules.