Page 137 - Alex Ruscuklic - Complete Works

• Be available for businesses who start to hold or start to construct the asset after 12.01am AEDT 13 December 2008 and before the end of June 2009. Assets must be ready for use by the end of June 2010; and
• Apply to tangible assets used in carrying on a business for which a deduction is available under the core provisions of Division 40 (Capital Allowances) in the Income Tax Assessment Act 1997 (ITAA97). Land and trading stock are excluded from the definition of depreciating assets, and will not qualify for the investment allowance.
The structure of the arrangement means business only has to order the relevant assets by 30 June 2009 provided they are ready for use by 30 June 2010. This may provide significant cash flow relief to business in many instances.
It is estimated the potential value of the proposal will be $1.6 billion over the forward estimates period. This represents a substantial stimulus to encourage investment, which is particularly important to help maintain economic growth and employment.
ACCI strongly encourages business to take advice on the matter and will welcome any additional material that is provided by the Australian Taxation Office to help inform these decisions.
For further information:
Peter Anderson Greg Evans
Brett Hogan www.acci.asn.au
Chief Executive
Director, Industry Policy & Economics Director of Communications
02 6273 2311 / 0417 264 862 02 6273 2311 / 0407 204 559 03 9668 9950 / 0407 273 884
ACCI represents over 350,000 businesses in every State and Territory and all industries. Our network employs around 4 million employees, ranging from the top 100 companies to tens of thousands of small and medium businesses.
LEADING AUSTRALIAN BUSINESS
Glenn Hester Photography
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