# ATO: Correctly claim temporary full expensing



## Jack Malarkey (Jan 11, 2016)

From the Australian Taxation Office’s small business newsroom:









Correctly claim temporary full expensing


Helpful tips on a common error sole traders are facing in their tax returns.




www.ato.gov.au





*Correctly claim temporary full expensing*










*16 August 2021*

Some sole traders have experienced errors when completing the temporary full expensing (TFE) and backing business investment (BBI) sections in their tax returns.

The error occurs when you incorrectly select an item from the TFE opt out drop-down list in your return.

If you are not opting out of TFE or BBI, or claiming a TFE deduction, you can skip all the labels about TFE or BBI in your tax return. No errors will occur, and you can proceed to lodge your tax return.

To claim TFE:

add your TFE claim to your 'Depreciation expenses'
complete the ‘Temporary full expensing deductions’ labels to tell us the value of the TFE deduction claimed, and
complete the number of assets you are claiming for.
Only complete the ‘Temporary full expensing deductions’ labels if you are claiming TFE.

To opt out of TFE or BBI:

select the appropriate option at the relevant opt out question
tell us the number and value of assets you are opting out of TFE or BBI.
You only need to complete the opt out question and details if you are choosing not to apply TFE or BBI to your eligible assets.

Remember, registered tax agents and BAS agents can help with your tax return.

*More information:*

Temporary full expensing
Backing business investment – accelerated depreciation
Using ATO online services – individuals and sole traders
Support for small business


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## Jack Malarkey (Jan 11, 2016)

Australian Taxation Office:









Temporary full expensing videos


We’ve released a series of videos to help you understand the temporary full expensing measure.




www.ato.gov.au





*Temporary full expensing videos*

We’ve released a series of videos to help you understanding the temporary full expensing measure (TFE).

TFE provides an immediate deduction on the business portion of the cost of eligible depreciating assets, and the cost of improvements to eligible depreciating assets from 6 October 2020 to 30 June 2022.

Our new video series, presented by Deputy Commissioner Andrew Watson, explains the eligibility requirements and how to claim:

Your guide to eligibility for the temporary full expensing measureThis link opens in a new window – this video explains the eligibility requirements for temporary full expensing.
Your guide to claiming a temporary full expensing deductionThis link opens in a new window – this video will walk you through how to claim TFE in your tax return.
Temporary full expensing for small businesses using simplified depreciation rulesThis link opens in a new window – this video takes a closer look at how TFE works for small business entities using the simplified depreciation rules.
See also:

Temporary full expensing


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## Jack Malarkey (Jan 11, 2016)

LinkedIn









Explained: temporary full expensing and loss carry back


The temporary full expensing (TFE) and loss carry back (LCB) measures are available to businesses to assist with the impacts of COVID-19. TFE allows eligible businesses to claim an immediate deduction for the business portion of the cost of an asset in the year it is first used or installed ready fo




www.linkedin.com






*Explained: temporary full expensing …*

Andrew Watson










*Assistant Commissioner at Australian Taxation Office*

Published Sep 17, 2021


The temporary full expensing (TFE) and …measures are available to businesses to assist with the impacts of COVID-19.

TFE allows eligible businesses to claim an immediate deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use for a taxable purpose.

…

Watch our new videos to understand:

if you're eligible
the steps to claim
how TFE works for small business entities using the simplified depreciation rules
…, and
common mistakes to avoid.
Find out more and watch the videos


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