The ‘Small Business & General Business Tax Break’ Bill was passed by both houses of Parliament on Thursday 14 of May. Eligibility for the Investment Allowance is based on the turnover of the business acquiring the asset.

Businesses with turnover $2 million or greater

Benefit 1: The Investment Allowance enables customers to claim an additional 30% tax deduction on equipment acquired between 13 December 2008 and 30 June 2009 and delivered/installed before 30 June 2010. The Investment Allowance applies to most types of new plant and equipment, including motor vehicles.

Benefit 2: For eligible assets that are acquired from 1 July 2009 to 31 December 2009, businesses can claim an additional 10% deduction where the goods are received by 31 December 2010.

Note: Businesses with an annual turnover of $2M or greater can only claim on equipment costing $10,000 or above.