30percent.com.au

If you have been following the Australian Federal Government’s proposed 30% investment tax break… you will be more than aware of the fact that is it still just that… proposed!

And after what we saw happen with the “Alcopops” tax earlier this year, why would any serious business take advantage of a tax break that may not eventuate?

On the Sydney Morning Herald’s “My Small Business” site, Max Newnham posted an article which captures that exact sentiment, and dives a little deeper.

Here are a few of the key quotes from the article – first from the dealer principal of Yarra Valley Motor Group:

… 30 percent of our business customers are delaying the purchase of new commercial vehicles due to the uncertainty surrounding the investment allowance.

If that didn’t drive it home strong enough, this quote from the CEO of Network Help certainly will:

“Eight out of 10 companies we have submitted proposals to (are) delaying the upgrading of computer systems due to the uncertainty of whether the investment allowance will pass”

So what can we do about it?

Not much really until our friends in Canberra get back to work next week and start moving the bill through the house and across to the senate.  Being budget night on May 12, you would think that the Government would take advantage of that timing and accelerate the bill through parliament.. but who knows!

Best bet?  Keep checking back at 30percent.com.au for the latest news on the passage of the bill.