For small businesses (under $2m turnover) a bonus deduction of 30% of eligible assets costing $1000 or more is available.  The allowance is available to any business which contracts to purchase an eligible asset between 13 December, 2008 and 30 June, 2009.  The asset must be installed by 30 June, 2010.

The allowance is claimable when the asset is constructed/installed.  Contracting and installing an asset before 30 June, 2009 will result in a tax deduction in the 2009 financial year.  Installing an asset after 30 June will delay the deduction until 2010.

A lesser bonus of 10% is given if the asset is contracted between 1 July, 2009 and 31 December, 2009.

For businesses with turnover above $2m, a 30% allowance will be available for the same time periods where eligible assets costing $10,000 are acquired.

The allowance does not apply to all assets eg leasehold improvements.  Please contact our office prior to making any contractual agreement.