The Federal Government’s Investment Allowance provides the perfect opportunity for eligible small businesses to purchase BRAND NEW motor vehicles, machinery or office equipment.

The Federal Government’s Investment Allowance or small business tax break provides a "one-off" bonus tax deduction; over and above the standard depreciation allowance.

Small business entities, with a turnover of less than $2 million per year,can claim an additional tax deduction of 50% for eligible brand new assets costing $1,000 or more (exclusive of GST) acquired from 13th December 2008 until 31st December 2009, and installed ready for use by 31st December 2010.

Brand new vehicles qualify for the Investment Allowance, except where the taxpayer uses the cents per kilometre method to determine their car expense deductions.

For example, potential benefits of purchasing a vehicle

If a small business for example, with an annual turnover of less than $2 million, purchases a brand new $30,000 vehicle, that business could potentially gain an additional tax deduction of $15,000 over and above the standard depreciation allowance.

Why hurry?

The Investment Allowance expires on 31 December 2009 and will not be extended. This is a fantastic opportunity for small business owners to upgrade their equipment and minimise their income tax.

What do I need to do?

Before you go shopping we recommend you give your tax accountant a call on 9246 9055 to make sure you qualify for the small business tax break.

If you have not lodged your 2009 income tax return then you may need to have that completed in order to qualify for bank finance. Call us on 9246 9055 to arrange an appointment to prepare your income tax return.

Finally, if you have any questions then do not hesitate to contact our office on 9246 9055.

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