COAL Miners are welcoming the Federal Government’s 30% tax allowance for the purchase of earthmoving machinery.
Mining equipment manufacturer Komatsu says the tax break is vital to rebuilding the nation’s infrastructure, increasing investment, supporting jobs and overall giving the economy a much needed boost.
The initiative is part of the government’s $42b Nation Building and Jobs Plan announced on 5 February 2009.
Under the government’s plan (which still has to pass through the Senate) businesses — such as quarries will be able to claim a bonus deduction of 30% for eligible assets — including earthmoving and other capital equipment — costing $10,000 or more.
To be eligible for the investment allowance, businesses must
• acquire or start to hold the equipment under a contract entered into between December 13 2008 and the end of June 2009 and
• have it installed ready for use by the end of June 2010.
For eligible assets purchased between July 1, 2009 and December 31, 2009, the bonus deduction drops to 10%.
These deductions are on top of the usual capital allowance deduction claimable for the asset as part of a business’s income tax return.
Komatsu Australia Corporate Finance says it can advise businesses on the best way to tailor their equipment finance to optimise this tax break and maximise productivity. It says it also offers comprehensive customer service and support network in Australia.