Australia: Guidance on claiming temporary full expensing and loss carryback
Australia: Claiming temporary full expensing
The Australian Taxation Office (ATO) issued guidance for businesses claiming temporary full expensing and loss carryback in their 2020-21 tax returns.
As explained in the ATO guidance, to claim or opt-out of either measure, certain information is required.
- Temporary full expensing:
- Whether the taxpayer is making a choice to opt-out of temporary full expensing for some, or all of, the eligible assets
- The number of assets the taxpayer is claiming or opting-out for
- The value of the assets (if applicable)
- The total amount of the taxpayer’s temporary full expensing deduction
- Whether the taxpayer is using the alternative income test (corporate entities)
- Information about the taxpayer’s aggregated turnover
- Loss carryback:
- Opening and closing franking account balance
- Aggregated turnover for each loss year
- The amounts of the taxpayer’s tax losses that are being carried back
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