Government Investment Allowance

Get up to an additional 50% tax deduction on new livestock handling facilities. To maximise benefits for the 2009/2010 year, orders must be placed by 31st DECEMBER 2009

The Federal Government's has announced new proposals for Investment Allowance and Tax Incentives to encourage capital investment. The Federal Government has increased the additional tax deduction from 30% to 50% for small businesses.

To support jobs and Australian businesses - especially small businesses - the Government will fund an investment tax break for all Australian businesses.

This temporary business tax break will help Australian businesses boost business investment, bolster economic activity and support Australian jobs.

Important Note: Livestock handling facilities qualify for the investment allowance. To maximise benefits for the 2009/2010 financial year, orders must be placed by 31st December 2009.

 

Brief Summary of the Allowance:

• Small business entities will be able to claim a bonus tax deduction of 50 per cent for eligible assets costing $1,000 or more (exclusive of GST) that they:

- commit to investing in between 12:01am AEDT 13 December 2008 and 31 December 2009; and
- start to use or have installed ready for use by 31 December 2010.

To qualify for the 50 per cent rate you need to meet the definition of a small business entity. This generally means that the taxpayer is carrying on a business and has an annual turnover of $2 million or less.

• Other businesses will be able to claim a bonus deduction of 30 per cent for eligible assets costing $10,000 or more (exclusive of GST) that they:

- commit to investing in between 12:01am AEDT 13 December 2008 and 30 June 2009; and
- start to use or have installed ready for use by 30 June 2010.

• Other businesses will be able to claim a bonus deduction of 10 per cent for eligible assets costing $10,000 or more (exclusive of GST) that they:

- commit to investing in between 1 July 2009 31 December 2009; and
- start to use or have installed ready for use by 31 December 2010.

  

Contact your financial advisor for specific advice relating to your business. Further information can be obtained from the follwoing link: http://www.treasurer.gov.au