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Government
Investment Allowance now 30%! |
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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 Machinery and Equipment.
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The allowance, gives businesses a
“one off tax deduction” equal to 30% of the
Capital Cost of eligible New Machinery and
Equipment. This is in addition to the standard
depreciation claimed for such assets. |
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For example, on a $100,000 asset
this equates to an extra $30,000 as a “one off”
tax deduction. |
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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 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 machinery and
equipment)
- Acquired or ordered
between 13th December 2008 and 30th June
2009
- Installed & ready for use
by 30th June 2010
- Note: 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.
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For the Government Press Release
on this 30% allowance, please
click here |
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For information on the entire $42
Billion Nation Building and Jobs Plan Press
Release, please
click here |
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There is a 5 month window to act
in order to secure the 30% allowance. You may
well not take delivery of certain items until
May 2010 however you would need to place the
order for those items before 30 June 2009. |
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With interest rates at 40 year
lows and still dropping, Machinery and Equipment
being sold at bargain prices, a 30% extra tax
deduction on the table and a $42 billion
stimulus package, it may be time for you to act
now!! |
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There has never been a more
critical time for you to position your
businesses for the future. If investing in
capital machinery and equipment can make your
businesses leaner & fitter then you should give
it serious consideration. Even in tougher
economic environments client bases can expand as
less capable competitors go out of business. |
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As you know, at CTS Plastics
Machinery, we specialise in providing total
solutions for a range of new machinery &
equipment for plastics processing industries. |
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Now, did you
know??
We Supply,
Service & Support these Companies |
