Time is running out for businesses to take advantage of the Federal Government’s Investment Allowance, according to Alliance Equipment Finance . Assets will need to be purchased prior to December 31, for Small Business (With an annual turnover less than $2mn) to claim the 50 per cent Investment Allowance. General Business – those who turnover more than $2mn a year, can claim a tax break of 10 per cent until the same date.
Small Business and General Business can claim their respective (50% and 10%) tax deductions for new assets, or upgrades to existing assets for capital investment, undertaken between December 13 2008 and December 31 2009. Equipment purchased must be installed or in use by 31 December 2010.
Benefits of the investment allowance include:
- Small Business can claim the deduction for all eligible assets worth $1 000 or more
- Businesses with a turnover greater than $2 000 000 can claim for all eligible assets over $10 000
- Financing new purchases will ensure the benefits will be reaped through additional deductions and the added efficiencies of new equipment today
- Allowing the cost of the equipment to be spead over a number of years and future earnings