30% ADDITIONAL DEPRECIATION ON ANY NEW EQUIPMENT/MOTOR VEHICLE PURCHASED BEFORE 30 JUNE 2009!!!

The Australian Financial Rescue Package has allocated an ‘ADDITIONAL’ depreciation of 30% to any small and medium business buying new equipment. Meaning, if any business purchases a NEW plant/equipment/motor vehicle by the end of the 30 June 2009, they could be eligible to receive the 30% additional depreciation.

Example:   If a business was to order and acquire (by June 30, 2009) a new motor vehicle to the value of $50,000, then that business will be eligible for an additional $15,000 in depreciation to claim by the end of the financial year. Don’t forget, the vehicle has its standard depreciation to claim on top of the bonus scheme.

Terms & Conditions of the ’30 % Additional Depreciation’:

· All assets purchased must be brand new (not used)
· For businesses having a turn over GREATER than 2 million per annum, the minimum purchase price of the equipment/motor vehicle needs to exceed $10,000.
· For small businesses having a turn over LESS than 2 million per annum, the minimum purchase price on new goods need to exceed $1,000.
· The asset must be acquired or ordered between the 13th of December 2008 and the 30th of June 2009.
· It must be installed and ready for use either by the 30th of June 2009 or 30th of June 2010.

NOTE: If the item of plant or the motor vehicle is not acquired or ordered until after 30th of June 2009, then provided it is ordered by 31st of December 2009 or installed and ready for use by the 31st of December 2010 a 10% one-off tax deduction is available.