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  • Temporary full expensing and Backing business investment schedule – Substituted accounting period or lodging a tax return for a part year

    This is a form for individuals, companies, partnerships, trusts and attribution managed investment trusts (AMIT) who are claiming a deduction or opting out of temporary full expensing or backing business investment, and either:

    • have an approved substituted accounting period with a year ending before 30 June 2021
    • need to lodge a tax return for part of the year. This could be because your business is entering into liquidation or you stop being an Australian resident for tax purposes during the 2021 income year before 30 June 2021.

    When lodging an individual, company, partnership, trust or AMIT tax return, use this form to notify us of either your:

    • deduction for temporary full expensing, number of assets you are claiming for, aggregated turnover and if you are using the alternative income test
    • decision to opt out of temporary full expensing or backing business investment and the number and value of the assets that you are opting out for.

    On this page:

    See also:

    Who should complete this form

    Only complete this form if you are claiming temporary full expensing or making the choice to opt out of temporary full expensing or backing business investment.

    This form should be completed by either the individual, public officer, director, partner, trustee or tax agent who lodges for the business before 1 July 2021.

    From 1 July 2021, you must use the 2021 tax return form.

    To complete the temporary full expensing and backing business investment schedule:

    • we recommend using a desktop device or laptop
    • download the form below by right clicking on the link and selecting Save (link) target as (this wording may vary depending on your internet browser)
    • open the form and enable JavaScript if prompted
    • complete the form on your computer and save a copy.

    Next step:

    Completing the form

    Enter the income year you are lodging for. In most instances, this will be either:

    • your approved substituted accounting period
    • the part of the year you are lodging for.

    Section A: Entity details

    Complete all necessary fields.

    Section B: Temporary full expensing

    Opting out

    You can choose to not claim a deduction under temporary full expensing for an income year. Once made, this choice cannot be changed for the relevant income year.

    If you are making a choice to opt out of temporary full expensing for certain eligible assets, indicate your choice at item 5 by selecting either:

    • Yes – some eligible assets
    • Yes – all eligible assets
    • No.

    You must include the number and value of the assets you are opting out for. The value is the amount you would have otherwise claimed for.

    You will not be penalised for specifying an incorrect number of assets where you have made your best attempt to determine the number of assets you are opting out for.

    If you choose to opt out of temporary full expensing for all eligible assets, proceed to Section C.

    Making a claim

    If you are claiming a deduction under temporary full expensing you need to include the:

    • value of your claim at item 6
    • number of assets you are claiming for at item 7.

    The value is the amount you have claimed under temporary full expensing.

    You will not be penalised for specifying an incorrect number of assets where you have made your best attempt to determine the number of assets you are claiming for.

    If you are eligible for temporary full expensing because of the alternative income test for corporate entities, select 'Yes' at item 8.

    Individuals, companies, partnerships and trusts must also include the amount of their claim in the depreciation label on their tax return as follows:

    • individual – label 8M of the Business and professional items schedule for individuals
    • company – label 7F
    • partnership – label 5K
    • trust – label 5K.

    AMITs are required to lodge their income tax return electronically. If you are an AMIT claiming temporary full expensing, include the amount at the 'Total depreciation deducted for income year' section of your return.

    If you selected 'Yes' at item 8, proceed to Section C.

    Companies that selected 'No' at item 8, as well as partnerships and trusts, must select their aggregated turnover range at item 9. Your aggregated turnover range can be either your current year aggregated turnover (the income year of this schedule) or your previous year's aggregated turnover. Select the category based on either the current or previous income year.

    Aggregated annual turnover ranges

    Category

    Aggregated annual turnover range

    A

    $0 to less than $7.5 million

    B

    $7.5 million to less than $10 million

    C

    $10 million to less than $20 million

    D

    $20 million to less than $40 million

    E

    $40 million to less than $50 million

    F

    $50 million to less than $100 million

    G

    $100 million to less than $200 million

    H

    $200 million to less than $300 million

    I

    $300 million to less than $400 million

    J

    $400 million to less than $500 million

    K

    $500 million to less than $600 million

    L

    $600 million to less than $700 million

    M

    $700 million to less than $800 million

    N

    $800 million to less than $900 million

    O

    $900 million to less than $1 billion

    P

    $1 billion or over

    If you selected category P at item 9, write the amount of your actual aggregated turnover rounded to the nearest $100 million at item 10.

    Your actual aggregated turnover specified can be either your current year aggregated turnover (the income year of this schedule) or your previous year's aggregated turnover.

    You will not be penalised for specifying an incorrect category or amount where you make your best attempt to calculate your aggregated turnover.

    For more information about calculating your aggregated turnover, see Aggregation.

    Section C: Backing business investment

    You can choose to not make a claim under the backing business investment rules. Once made, this choice cannot be changed for the relevant income year.

    If you are making a choice to opt out of backing business investment for certain eligible assets, indicate your choice at item 11 by selecting either:

    • Yes – some eligible assets
    • Yes – all eligible assets
    • No.

    You must include the number and value of the assets you are opting out for. The value is the amount you would have otherwise claimed for.

    Section D: Declaration

    Complete all necessary fields.

    Note: A written signature is not required if you lodge this form electronically.

    Penalties may be imposed for giving false or misleading statements.

    How to lodge your form

    Keep a copy of the completed form for your own records.

    The completed form must be submitted before or when lodging your tax return.

    You can lodge your form either:

    • online via our Online services for agents, Online services for business, or Business Portal
      • Select New message
      • Topic name: Income tax
      • Subject: Lodge temporary full expensing schedule
      • Attach the saved PDF form.
       
    • by post with your tax return to

      Australian Taxation Office
      PO Box 3000
      PENRITH  NSW  2740.
    Last modified: 09 Apr 2021QC 64811