Federal Government Pushes Business Capex

As part of the Federal Government's $42 billion stimulus package announced yesterday, businesses will be entitled to an additional one off deduction on the acquisition of certain assets acquired between 13 December 2008 and 31 December 2009.

Small business taxpayers will be able to access the concession on the acquisition of assets costing $1,000 or more. For all other business taxpayers the acquisition threshold is $10,000.

The concession, in the form of an additional tax deduction of 30 per cent of the asset's cost applies to assets acquired between 13 December 2008 and 30 June 2009, where the asset is also installed before 30 June 2010.

Where assets are acquired between 1 July 2009 and 31 December 2009, and installed ready for use before 31 December 2010, the deduction will be 10 per cent of the asset's cost.