FEDERAL GOVERNMENT INVESTMENT ALLOWANCE

Small Business and General Business Tax Break Legislation

The allowance will be in the form of an additional tax deduction equal to 50 per cent of the cost of eligible new tangible depreciating assets. This is in addition to the standard depreciation claimed for such assets.

Small business entities will need to spend a minimum of $1,000 per asset in order to qualify for the tax deduction. All other businesses will need to meet a minimum expenditure threshold of $10,000 per asset.

To be an “ eligible asset” the following criteria are required:

• The asset must be purchased between 13th December 2008 and 31st December 2009. To be an eligible investment, the taxpayer must start to hold the asset under a contract entered into between those specified times.
• Applies to new assets or new expenditure on existing assets only (used or secondhand assets do not qualify). The word “new” refers to assets that have not been used before by anyone, anywhere.
• Expenditure on existing assets that qualify for the tax deduction can also include new attachments for existing equipment.
• Must cost more than $10,000 ($1,000 if company turnover is less than $2 million per annum).
• The taxpayer must be the legal owner of the asset (used principally in Australia) and carrying on a business.
• For tax purposes, entitled to claim a deduction for depreciation.
• Must be installed, ready for use by 31st December 2010.

The allowance can be claimed through the entities income tax return.

A lesser 10 per cent allowance is available for assets purchased between 1st July 2009 and 31st December 2009 if the above criteria are met.

Austin Hoist & Crane customers who purchase new lifting equipment outright before 31st December 2009 can claim the full 50 per cent tax deduction. So ACT NOW and SAVE!

For more information see the Treasurer’s joint Media Release No. 061 with the Minister for Small Business Independent Contractors and the Service Economy of 12 May 2009, which announces the Small Business Tax Break Boost, or check details with your accountant or the tax office.

Business Tax Break Infoline: 1300 337 921