Please note: This is a summary of an AELA Advice only and is intended for general information purposes only, and should not be construed as professional advice. Readers should seek professional advice from their accountants.
Eligibility – 30% Investment Allowance:
1. Purchases of new and used, tangible depreciating assets used in carrying on a business.
2. Small businesses turning over $2 m per year or less – minimum cost price excl GST is $1,000.
3. Other businesses turning over $2 m per year or more – minimum cost price excl GST is $10,000.
4. Asset to be acquired between 13th December 2008 and 30th June 2009 and installed by 30th June 2010.
5. Allowance is provided as an additional tax deduction. Clients claim 130% of the cost price with an outright 30% deduction claimable in the income year in which the asset is installed ready for use, and the remaining 100% over the effective life of the asset.
Prime Minister Kevin Rudd says $4.7 billion will be spent across a range of transport, rail, roads and education infrastructure as part of the Government’s measures to keep growth and productivity strong as the global financial crisis continues to bite.
Payout your car finance early, the rule of 78 works for you. Payout your car finance later in the term, does it really make a difference using the rule of 78?
KEVIN Rudd will forge ahead with a multi-billion-dollar car industry assistance package today, amid fears of further job losses and a downturn in the market, but he will warn manufacturers not to expect a blank cheque.
Focusing on fuel-efficient cars, the new stimulus package is expected to go beyond the $2.5 billion in extra funding previously flagged, significantly boosting the Government’s proposed green car innovation fund.