The Government’s small business allowance ends soon. It is important to ensure that you purchase any equipment that you may require for business purposes prior to 31 December 2009. Signing a purchase order prior to that date will not entitle you to the allowance unless it has been paid for by 31 December 2009.

Businesses with a turnover of less than $2 million can claim an additional 50% tax deduction on equipment costing over $1,000 and purchased prior to 31 December 2009 and delivered/installed before 31 December 2010. The Investment Allowance applies to most types of new plant and equipment, including motor vehicles.

Businesses with a turnover of $2 million or greater can claim an additional 30% tax deduction on equipment costing $10,000 or more and 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. 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.