ckg newsletter / articles /Current Investment Allowance to 30% to further boost business investment

Current Investment Allowance to 30%
to further boost business investment

The Federal Government has announced an additional $2.7 billion in tax breaks to small and larger businesses to encourage Australian businesses to undertake capital investment.

As part of this incentive, an investment allowance for the purchase of tangible depreciating assets used in carrying on a business will now attract a 30% once off investment allowance in 2009 and 2010 financial years.

Small businesses , that is businesses with less than $2,000,000 turnover will be able to access the tax break for assets costing from $1,000 . Larger businesses with a turnover over $2,000,000 will have the asset threshold from $10,000.

For those assets acquired from 13 December 2008 to 30 June 2009, where the asset is also installed before 30 June 2010, the tax deduction will be equal to 30% of the asset’s cost.
For assets acquired between 1 July 2009 and where they are installed ready for use before 31 December 2010, the deduction is 10% of asset’s cost.

To ensure you maximise your opportunities and meet legislation requirements, we suggest you give us a call and or review the ATO website for further information.
www.ato.gov.au.