A reminder that the 50% Investment Allowance finishes at the end of this month.
In the Federal Budget the Government increased the small business tax break boost from 30% to 50% of the cost of eligible assets purchased between 13 December 2008 and 31 December 2009, and installed by 31 December 2010.
The allowance is available for all businesses with the following conditions:
- Applies to eligible new depreciating assets purchased under a contract, or started to be constructed, after 13th December 2008 and before the end of December 2009 and installed ready for use by the end of December 2010
- The assets must be new assets – not used
- New expenditure on existing assets may also qualify
- Small businesses will be able to claim the deduction for eligible assets costing $1,000 GST exclusive or more
- Small businesses must have a turnover of less than $2 million a year to qualify
- For others that are not small businesses, a minimum expenditure threshold of $10,000 GST exclusive applies; the rate of the allowance is 10% if executed by 31 December 2009.
Call Renato Brocco (details below) to find out how you can take advantage of the new business investment allowance.
Renato Brocco CPA
Ph: 1300 788 371
Mob: 0416 119 155