Investment Allowance Mk II

On 3 February this year, the Treasurer announced a second investment allowance as part of the second economic stimulus package.  This announcement appears to represent the expansion of the investment allowance announced in December last year.  The February announcement varies the original investment allowance proposal in three ways:

• the amount of the incentive is increased to an additional 30% of the cost of acquiring or improving an asset;
• the threshold for access to benefits has been reduced for small businesses – an incentive is available to small businesses for expenditure of $1,000 or more; and
• the duration of the original (10%) benefit is extended by 6 months.

This Tax Brief outlines what has changed and what remains.  For our full Tax Brief - click here