Daniel Hall writes.
The Federal Government’s Investment Allowance packages have passed through both houses of Federal Parliament, meaning businesses will receive significant savings as they seek to boost their productivity by adopting more advanced equipment and vehicles.
Finlease finance broker Mark O’Donoghue told MINING DAILY that there are two very distinct levels of the Investment Allowance.
“Companies that have a turnover greater than $2 million per annum have an Investment Allowance of 30%,” O’Donoghue said.
“That Investment Allowance requires the following circumstances: the capital equipment, or upgrade, needs to be ordered by 30 June 2009, and that’s only five weeks away, and the asset must be in-service operational by 30 June 2010.”
Businesses with turnover less than $2 million per annum have a 50% Investment Allowance.
According to O’Donoghue, they have a six month extension, up until the 31 December 2009 to order, and up until 31 December 2010 for delivery.
“The investment allowance is only for new equipment, including motor vehicles, and also includes upgrades to existing equipment,” O’Donoghue said.
“Where there’s a 30% investment allowance for those companies with a turnover greater than $2 million, the amount the company has to spend is $10,000 or greater, but where it’s for small business, it’s only $1,000.”
While the Investment Allowance does not cover capital investment in new machinery, it does include investment in demonstrators.
<table
<td
Investment Allowance
<td
Capital must be ordered by
<td
Capital must be operational by
Turnover more than $2 M
<td
30%
<td
30 June 2009
<td
30 June 2010
Turnover less than $2 M
<td
50%
<td
31 December 2009
<td
31 December 2010