Maximise year end deductions in your medical practice through Temporary Full Expensing
8 December 2022
With just over six months to go until the end of the financial year, now is the time to plan your yearend tax position and consider how temporary full expensing may reduce or wipe out your tax liability. The key point to realise is that it is “temporary” ending on 30 June 2023.
Temporary full expensing can support your practice by improving your cash flow and the health of your business. Eligible businesses can claim an immediate deduction for a business asset in the year it is first used or installed ready for use for a taxable purpose.
Your practice will likely be eligible for temporary full expensing as it is available to businesses with an aggregated turnover of less than $5 billion.
The structuring of financing needs to be carefully considered as the form of financing affects who obtains the benefit. For example, it generally does not apply to assets the practice leases, while an asset financed with a chattel mortgage would qualify.
In many cases, the practice can claim the cost of new and second-hand assets acquired and used or installed for use before 30 June 2023. Timing is critical as due to supply chain issues you may need to order new equipment now to have it in use before the 30 June 2023 deadline.