30percent.com.au

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.