Awesome Tax Deduction disappears in just 3 months.

We forget that one of the great Covid initiatives was ability to write off 100% of all depreciable capital equipment acquired during the financial year. All in one hit.

Furthermore, if that expenditure was IT related, there was a further 20% ‘Tax Boost” to really make it tax effective.

Nearly every client took advantage of this, and most expenditure and clients qualified. It was a great little incentive to upgrade equipment and have the ATO fund a big proportion of your asset pool or IT spend.

Sadly, that world comes to an end on 30 June 2023. There is still time to catch the ‘last wave’. Remember that any assets must be installed and ready for use by 30 June 2023 to qualify. So a new machine from Germany that is installed in July 2023 will miss out.

After that, assets will be depreciated at their schedule rates relating to their expected life. Remember those days? As from 1 July, that will be the new (old) reality.

As always, seek advice as to whether your intended purchases will qualify.

ANDREA McNAMARA
4 April 2023.