FAQ: How much is the additional tax deduction available under the Temporary Investment Allowance?
How much is the additional tax deduction available under the Temporary Investment Allowance?
The additional tax deductions available under the Federal
Government Temporary Investment allowance are:
- For small
business - 50 per cent of the cost
(excl. GST) of eligible new depreciating assets acquired under a
contract, or started to be constructed, after 12.01am AEDT 13
December 2008 and before the end of December 2009, and installed
ready for use by the end of December 2010, and,
- For general business -
30 per cent of the cost (excl. GST) of eligible new depreciating
assets acquired under a contract, or started to be constructed,
after 12.01am AEDT 13 December 2008 and before the end of June
2009, and installed ready for use by the end of June 2010,
and,
- For general business -
10 per cent of the cost (excl. GST) of an eligible asset acquired
under a contract, or started to be constructed, between 1 July 2009
and 31 December 2009, and installed ready for use by the end of
December 2010.
These tax deductions are in addition to any other applicable tax
deductions for the assets, and are claimable in the Financial Year
in which the asset is installed and ready to use.
This means the total tax deduction for eligible assets is 150%
or 130% or 110% of the total cost price (excl. GST), with 50% or
30% or 10% claimable up-front in the year in which the asset is
installed ready for use, and the other 100% claimable as per normal
over the effective life of the asset.
Please note: The Temporary Investment Allowance
is no longer available for asset purchases made
after 31 December 2009. This information is provided for reference
purposes only.
Please note that this information is of a general nature only. You should consult an accountant to obtain information specific to your situation.
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