Terms & Conditions for the Investment Allowance
* The new Investment Allowance is to provide assistance to small business to cope with the current decline in economic conditions by offering increased savings in investing in new capital assets.
* The Investment Allowance from the Australian Government has now passed through Parliament and is about to become law (pending final legislative approval).
* For companies with an annual turnover greater than A$2 million, purchases of any eligible asset worth more than A$10,000 (ex GST) before the end of June this year, and installed by 30 June 2010, will be entitled to a bonus tax deduction of 30% of the cost of the asset.
* The tax deduction is available in the year in which the asset is installed and held ready for use.
* For purchases made after 30 June 2009, the tax deduction will drop to 10%.
* For smaller companies with an annual turnover less than A$2 million, the investment allowance legislation has now changed.  Eligible assets worth more than A$1000 (ex GST) purchased before the end of December this year, and installed by 31 December 2010, will attract a bonus tax deduction of 50% of the cost of the asset.

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