With the aim of creating more demand within the business community, the government has announced an extension of the investment allowance valid for most new assets purchased.

This will be an additional deduction based upon the cost of the asset.

For businesses that are classified as ‘small’ (annual turnover of less than $2 million) a 50% tax break is available for assets purchased between 13 December 2008 and 31 December 2009 (and installed between 13 December 2008 and 31 December 2010).

For ‘large’ businesses (annual turnover exceeding $2 million), a 30% tax break was available for assets purchased between 13 December 2008 and 30 June 2009 (and installed between 13 December 2008 and 30 June 2010). This reduced to 10% for assets purchased between 1 July 2009 and 31 December 2009 (and installed between 1 July 2009 and 31 December 2010).

Features include:
» Small business entity minimum asset cost is $1,000, other businesses $10,000
» Applies to most tangible depreciating costs e.g. machinery and equipment, but not land, trading stock
» Must be new - never previously been used or installed ready for use.
» It must be principally in Australia for the principal purpose of carrying on a business For further information, please do not hesitate to contact us or visit www.australia.gov.au/businesstaxbreak.
» It must be principally in Australia for the principal purpose of carrying on a business.

For further information, please do not hesitate to contact us or visit www.australia.gov.au/businesstaxbreak.