Businesses with an aggregated annual turnover of less than $5 billion will be entitled to deduct the full cost of eligible capital assets in the year they are first used.

The immediate education will be available for eligible capital assets acquired from 7.30pm AEDT on 6 October 2020 and first used or installed by 30 June 2022.

Full expensing in the year of first use will apply to:

• new depreciating assets;
• the cost of improvements to existing eligible assets; and
• for small and medium-sized businesses (aggregated annual turnover of less than $50 million) – second-hand assets.

 
Of course, it must also be reasonable to conclude (by the ATO) that you will use the asset principally in Australia for the purpose of carrying on a business, and the asset is located in Australia.

Businesses with aggregated annual turnover between $50 million and $500 million can still deduct the full cost of eligible second-hand assets costing less than $150,000 that are purchased by 31 December 2020 under the ‘instant asset write-off’.