Are you a small business?
Temporary full expensing & Loss carry back
You may be eligible for temporary full expensing if you are one of the following:
- a business with an aggregated turnover of less than $5 billion
- a corporate tax entity that meets the alternative income test.
For the 2020–21 and 2021–22 income years, an eligible entity can claim in its tax return a deduction for the business portion of the cost of eligible new assets first held.
What is TFE and LCB?
Temporary full expensing (TFE) and loss carry back (LCB) are new measures available to small businesses.
TFE allows eligible businesses to claim an immediate deduction for the business portion of the cost of an asset in the year it’s first used or installed.
LCB provides a refundable tax offset eligible corporate tax entities can claim by carrying back a tax loss. Corporate tax entities include companies, corporate limited partnerships or public trading trusts.
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