Extended application of instant asset write-off
Eligible businesses that acquire eligible new or second-hand assets under the $150,000 instant asset write-off by 31 December 2020 will have an extra six months, until 30 June 2021, to first use or install those assets.

The Government will extend the Budget 2020-21 measure allowing for the temporary full expensing of eligible depreciating assets for a further 12 months, until 30 June 2023.
Under this measure, businesses with aggregated turnover of less than $5 billion (or that satisfy an alternative income eligibility test) can deduct the full cost of eligible capital assets acquired after 7.30 pm AEDT on 6 October 2020 and first used or installed ready for use by 30 June 2023.
All other elements of temporary full expensing remain unchanged, including the alternative eligibility test based on total income together with prior year capex investment requirements.

The Government will extend the Budget 2020-21 measure allowing for the temporary loss-carry back for a further 12 months, to include the 2022-23 income year.
Under this measure, corporate tax entities with an aggregated annual turnover of less than $5 billion can carry back tax losses incurred in an eligible year against taxed profits in a previous year, generating a refundable tax offset.
This measure allows eligible companies to accelerate the cash benefit associated with tax losses and complements the temporary full expensing measure by allowing more companies to take advantage of expensing, while it is available.