The ATO has clarified the interaction between Temporary Full Expensing (TFE) and the simplified depreciation rules for small business entities. As TFE ended on 30 June 2026, the guidance addresses the treatment of assets acquired or first used during the TFE period (7:30pm AEDT 6 October 2020 to 30 June 2026) by small businesses using simplified depreciation. It confirms that TFE applied instead of the instant asset write-off and small business pool for eligible assets during that period.
Key Takeaways
- TFE Period: Applied to eligible assets first used or installed ready for use between 6 October 2020 and 30 June 2026.
- Small Business Interaction: Small businesses could choose TFE or simplified depreciation per asset; TFE provided 100% immediate deduction.
- Post-TFE Treatment: Assets allocated to the small business pool before TFE remain in the pool; TFE assets are not added to the pool.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
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