Businesses have been able to elect to use TFE to write off the cost of new assets, reducing their taxable income and bringing forward depreciation deductions that would have otherwise been required to be taken over the useful life of an asset.

From 1 July 2023 onwards:

• Businesses with a turnover below $10m, this reduces to $1,000 per asset

• Businesses with a turnover above $10m, this reduces to $100 per asset

In order to still utilise the TFE rules, assets must be purchased and installed ready for use prior to 30 June 2023.