The Federal Parliament has passed the government's business tax deduction programme which is good news for all companies looking to purchase assets. This includes material handling equipment such as containers, but companies with turnover in excess of $2 million need to make quick decisions because the incentive only applies for orders made before June.
For a business with sales over $2 million per annum, a tax break amounting to a 30% further tax deduction applies to eligible assets acquired under contract between December 2008 and June 2009 that are installed or delivered ready for use by June 2010. If the decision to purchase is made between July and December, a 10% deduction is allowable.
There is a threshold. To be eligible, the asset must be $10,000 or more. In the case of items such as containers, an individual item is under this cost, but if an asset is identical or forms part of a set, it is able to be aggregated in order to reach the threshold.
For business under $2 million in turnover, the deduction is 50% allowable for assets purchased from December 2008 to December 2009, so there is a bigger incentive and more time to make the decision. The threshold here is $1000 an asset.
According to SBH Solutions Australia , if a company does not want to part with cash, a chattel mortgage will allow payment for the asset over time while taking advantage of the incentive.