11-Mar-2009 The Federal Government on 13th Feb 2009 passed the Small Business & General Business Tax Break as part of the $42b Stimulus Package.

Benefit 1

The Investment Allowance enables small businesses to claim an additional 30% depreciation on equipment purchased between 13th Dec 2008 & 30th June 2009. The Investment Allowance applies to most types of new plant & equipment, including motor vehicles.

This is a one off additional depreciation claim for this equipment only. Equipment only purchased during this time frame is eligible for the 30% depreciation claim. It is not eligible for the additional 10% in the following period (see Benefit 2).

Benefit 2

For eligible assets costing $1,000 or more purchased from 1st July 2009 to 31st Dec 2009, businesses can claim an additional 10% depreciation where the goods are received by 31st Dec 2010.

Note: Businesses with an annual turnover of less than $2m can claim on equipment costing $1,000 or above, while businesses with a turnover of greater than $2m or above can claim on equipment costing $10,000 or above.

Please note that the Investment Allowance is not a rebate entitling you to a cheque or money. It is the ability to make a one-off depreciation claim above the existing ATO guidelines.

The claim may impact on your financial position & subsequently the amount of tax paid. Please discuss your situation with professional accountants to determine the best way to maximise the benefits of the Investment Allowance. 

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