Business Finance News and Information

Good news from the Federal Budget for business owners

You may have heard the good news regarding the Investment allowance for new or demonstrator motor vehicles.

There is a window now available for small business owners (with turnover under $2m p.a.) to claim a one off 50% investment allowance as a tax deduction when purchasing an eligible business asset (eg. motor vehicles, plant & equipment etc.) for $10,000 or more.  This is an increase from the 30% previously announced, and is backdated for purchases from December, 2008. 

This investment allowance is in addition to the standard 10% GST, 20% Depreciation, Interest and running costs etc. which are also deductible.  Effectively, this means that in certain circumstances, business owners may be able to claim around 80 - 85% of the purchase price within the first twelve months which is a great incentive to buy a new car now. 

Of course, I am unable to provide taxation advice and clients should refer to their own accountant for individual advice based on their own circumstances. 

If you know somebody who may be interested in purchasing a motor vehicle and taking advantage of the very generous taxation incentives in place, I would love to hear from you.

Please call me directly if you have any questions - I would be very happy to discuss further - particularly around ensuring the finance structure is done correctly to maximise the benefit.

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