Business Urged to Use Investment Tax Break
McKinley Plowman & Associates director Nigel Plowman speaks to WA Business News about how business owners can benefit from the Temporary Investment Allowance (TIA).
The allowance, announced as part of the Rudd’s Government’s fiscal stimulus program, aims to encourage business capital investment by providing an additional 30 per cent tax deduction for equipment bought before June 30, 2009.
Nigel says although the Bill is yet to pass through parliament, business owners should make a decision on planned purchases now.
He says business owners often delay their decisions about capital purchases until towards the end of the financial year, but those who wait too late risk missing out on the full 30 per cent deduction.
“Tighter lending practices among banks means it is now harder for businesses to borrow”, Nigel says.
“The key is to get your finance applications in order early rather than waiting until the big rush that generally occurs during the tax planning months of April, May and June.”
Nigel, who has coached many business owners to success, warns caution is needed if investments are brought forward just to take advantage of the 30 per cent allowance.
Reproduced with the permission of WA Business News.
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