As part of its $4.7 billion infrastructure statement on December 12, the federal government announced a 10% investment allowance to encourage businesses to undertake capital investment. Komatsu said the allowance will be available to businesses that acquire new “tangible depreciating assets” costing more than $10,000. Such assets include most types of plant and equipment, vehicles and other assets used by businesses.It said the allowance applies to equipment purchased between the date of the announcement on December 12 and June 30, 2009, and which is delivered by June 2010.“With the construction sector facing considerable uncertainty in the wake of the global financial crisis, the announcement of the 10% investment allowance – plus the bringing forward of significant levels of infrastructure construction – has the potential to provide a boost in confidence for the construction industry,” Komatsu construction general manager Sean Taylor said.“The investment allowance will help reduce the cost of new equipment purchases for contractors, plant hirers and owner-operators, while the infrastructure announcement – according to the government, the first of a number of these – will give added confidence for work prospects in these uncertain times,” he said.
