Home Trusted by 500,000+ buyers

Tax Profiles

Supplier: Finlease (Australia)

Government Announcement - Investment Allowance now 30%

Price Guide: POA

The Federal Government announced recently an increase in the 10% "Temporary Investment Allowance" to 30% as further stimulus to encourage businesses to invest in Capital Equipment and Motor Vehicles.

Subject to acceptance by the Senate the following will apply:

The allowance, gives businesses a "one off tax deduction" equal to 30% of the Capital Cost of eligible New Equipment and Motor Vehicles. This is in addition to the standard depreciation claimed for such assets.

For example, on a $100,000 machine this equates to an extra $30,000 as a “one off” tax deduction.

Although Industry is awaiting the finer details to be released (which are expected shortly and we'll update you as soon as the information comes to hand), the main points are:-

  • For new & demonstrator assets only (not used)
  • Must have a cost price in excess of $10,000 ($1,000 if company turnover is less than $2mil p/a)
  • Eligible capital equipment (including motor vehicles)
  • Acquired or ordered between 13th December 2008 and 30th June 2009
  • Installed & ready for use by 30th June 2010

N.B. A lesser 10% allowance is available if the 30 June 2009 order deadline is missed. This is essentially a 6 month extension on both order and delivery deadlines.

With interest rates at 40 year lows and still dropping, Equipment and Motor vehicles being sold at bargain prices, a 30% extra tax deduction on the table and a $42 billion stimulus package, it may be time to act!!

There has never been a more critical time to position your business for the future. If investing in capital equipment can make your business leaner & fitter you should give it serious consideration. Even in tougher economic environments client bases can expand as less capable competitors go out of business.

More information on Tax Profiles >>

Please note that Finlease service Australian customers only.