Investment Allowance

Article added: 18/02/09 

On the 3rd of February 2009 the Prime Minister and The Minister for Small Business announced;

The Government wil fund an investment tax break for all Australian businesses.

Small businesses (those with turnover of $2m or less a year) can claim an additional 30% tax deduction for eligible assets costing $1,000 or more that they acquire from 13 December 2008 to 30 June 2009, and install by the end of June 2010.

For eligible assets costing $1,000 or more that they acquire from 1 July 2009 to 31 December 2009 they can claim an additional 10% deduction where they are install by 31 December 2010.

Other businesses can receive the same deductions for eligible assests greater than $10,000.

Eligible assets for the allowance are NEW tangible assets and NEW expenditure on existing assets used in carrying on a business for which a deduction is available under the core provision of Division 40 (Capital Allowances) in the ITAA1997.