Manufacturing and the 30% Investment Tax Break
The content of this article and all others contained on 30percent.com.au is general and factual in nature. You should not act solely on the content presented on this site as it does not take into consideration your organisation's individual circumstances. Changes to the legislation specific to the 30% Investment Tax break may occur quickly and with that in mind you should discuss any decisions with your qualified accountant or financial advisor. The authors of 30percent.com.au are not responsible for any loss, inconvenience, damage (whether special or consequential) or claims arising out of the use of the information contained on this site. Legislation is not law at time of publishing.
Are you an Australian Manufacturer trying to understand the impact of the Federal Government’s 30% Investment Allowance?
According to the organisers of National Manufacturing Week (which is actually next week – 12-15 May - in Melbourne!)…
… businesses such as manufacturers, fabricators, workshops, warehouses and many others will be able to claim a bonus deduction of 30% for eligible assets – including manufacturing, processing, electronic, IT and other capital equipment…
As published in Manufacturers’ Monthly, the organisers of NMW also illustrate a great example of what the allowance actually means for manufacturers
… under the 30% business tax break, a piece of fabricating equipment costing $100,000 will be eligible to claim a deduction of 30% of that $100,000 – or $30,000. At the standard company tax rate of 30%, that would equate to a reduction in tax for the 2008-09 financial year of $9000
The thing to remember is that if you are a manufacturer who is interested in taking advantage of the tax break – you need to make your investment in eligible assets prior to 30 June 2009, and have the equipment installed and ready to go by 30 June 2010. The financial year you can claim the deduction in may vary depending on your investment – so make sure our article on when you can claim your tax break.
If you have any questions – best bet is to take this information and talk to your accounting team.