What's New

22nd May 2009

Government Investment Allowance is NOW Official

Last week the Federal Government's Investment Allowance legislation was approved by the Senate. It is expected to get Royal Assent from the Governor General this week - then it will become law.

The Rudd Government will provide another major boost to its highly successful Small Business and General Business Tax Break, providing vital stimulus to support jobs and help small businesses doing it tough in the global recession.

The Investment Allowance entitles small businesses to a bonus tax deduction of 30% of the cost of any eligible asset, including IT hardware, purchased before 30 June 2009, and installed by 30 June 2010. If the purchase is made after 30 June 2009, the tax deduction will drop to 10%.

The increased Tax Break provides small businesses with an even greater incentive to invest in new capital items, such as computer hardware, and to make capital improvements to existing office equipment and assets.

This major boost will support jobs and businesses all over the country. It accompanies the powerful steps taken by the Rudd Government to stimulate the economy so that small businesses have customers walking through their doors.

The expanded Tax Break will be available to small businesses with a turnover of less than $2 million.
All other businesses can continue to access the Tax Break at 30 per cent for eligible assets contracted for prior to 30 June 2009 and 10 per cent for eligible assets that they commit to investing in between 1 July 2009 and 31 December 2009.

Small businesses only need to invest a minimum of $1,000 per asset in order to qualify for the Tax Break. Under enhancements to the Tax Break announced in March 2009, they can also amalgamate their expenditure on batches and sets of assets in order to meet this threshold.

Contact Stott + Hoare for further information on how you can benefit from the Investment Allowance.

Source: www.treasurer.gov.au