With time running out for the Government’s Investment Allowance, Finlease is urging businesses to take advantage of the generous tax break.
According to Finlease, the Investment Allowance comes at an opportune time for businesses looking to increase their capabilities, and with the 31 December 2009 deadline fast approaching, there has never been a better time to take advantage of the tax break.
According to a Finlease spokesperson, the Investment Allowance offers “a truly unique opportunity for business which hasn’t been offered for 20 years.”
For businesses turning over $2 million or less, the Investment Allowance is a significant 50 percent. This is a one-off tax deduction on top of what you can already claim on various assets. For businesses turning over $2 million and above, there was the 30 percent Investment Allowance earlier this year. There is now an extended 2nd chance with a 31 December 2009 deadline extension providing an Investment Allowance of 10 percent.
Eligible purchases include new and demonstrator vehicles and equipment, even major upgrades of existing equipment. If you meet the order or purchase deadline of 31 December this year, equipment must be installed and ready for use by 31 December, 2010. For those $2 million+ businesses that already placed their order by 30 June 2009, the equipment must be installed and ready for use by 30 June 2010 to qualify for the initial 30 percent allowance.
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