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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