Leasecorp Motor Vehicle & Equipment Finance applaude this latest boost to business and investment.

At this point details have still not been clearly outlined to the finance or accounting industry, however a brief overview from Treasury is as follows:

• The investment allowance will only be available on purchases of eligible new depreciating assets not used;
• Asset must be ready for use and installed by 30th June 2010;
• The window for the Investment Allowance as far as ordering or being acquired is between 13th December 2008 and 30th June 2009;
• For companies with an annual turnover greater than $2million the cost price has to be in excess of $10,000;
• For companies with an annual turnover less than $2million the cost price has to be in excess of $1,000.

For Example: on a $60,000 (ex GST) new excavator purchased and taken possession of by 30th June 2009 there may be an additional claim of up to $18,000 in the 2008-09 tax return. For companies on a 30% tax rate it may save up to $5,400 in tax payable.

Leasecorp have secured the best interest rates in over 30 years from our lenders. We are seeing fantastic discounts on all sorts of machinery including, excavators, trucks and cranes. The biggest discounts in the last 2 months have been on motor vehicles, with some sales coming through our office at up to 25% off retail pricing, just to clear 2008 models.

The Australian economy is still weathering the storm much better than most other countries. We believe that now may be the best time to invest in capital equipment. As the economy improves, rates may rise with inflation again. Also dealers will try and retain more of their margins as sales increase.

It is very important to understand that the details of the above Investment Allowance have not been released to any accounting practices so care should be taken until written advice is obtained. We are happy to keep you informed as progress is made by clicking the Enquiry Form on the right hand side of your screen and typing in the words "Update on Investment Allowance".

If you are considering purchasing machinery and the Investment Allowance is totally approved by the Government, financiers will be inundated with applications. With so many banks and financiers pulling out of the lending industry it may be wise to gain a pre-approval. Leasecorp offers this service on a no-obligation basis.

Call our 1800 232 615 toll free number for a quote, seven days a week. Applications can be simply made over the phone.

Additional information can be found on the ATO website

Disclaimer: This is general advice only and does not take your individual circumstances into account. Before making a decision, please consider whether the information in this guide is appropriate in light of your particular objectives and financial situation or needs. Leasecorp accepts no responsibility for any errors or omissions except where obliged by law.