In the midst of the current global economic downturn, the
Australian Government is providing significant stimulus to the
domestic economy by providing some attractive incentives and
initiatives for businesses in Australia.
These incentives and initiatives are as follows:
$4.7 Billion Nation Building Package
The Government has announced a $4.7 billion nation building package to strengthen the
Australian economy and create Australian jobs. The package is a
timely investment in road, rail, and education infrastructure. The
three key infrastructure elements in the package are to inject $1.2
billion in new funds into the Australian Rail Track Corporation,
bring forward $711 million in road spending to current and next
financial year, and invest $1.6 billion in critical university and
Additional investment allowance
Australian businesses are eligible for an additional tax
deduction of 30 per cent for new eligible assets acquired before 30
June 2009 and installed ready for use before 30 June 2010. For new
eligible assets acquired between 1 July 2009 and 31 December 2009
and installed ready for use before 31 December 2010, the businesses
are eligible for an additional tax deduction of 10 per cent.
Small businesses (with turnover of less than $2 million a year)
will be able to claim the additional tax deduction for eligible
assets costing $1,000 or more, while for non-small businesses, a
minimum expenditure threshold of $10,000 applies. This investment
allowance will stimulate capital investment by businesses.
Australian Business Investment Partnership
The Government, in consultation with the four major Australian
banks, will set up a $4 billion Australian Business Investment
Partnership (which can expand to $30 billion), whereby the banks
will provide $2 billion and the Government another $2 billion.
These funds will provide financial support for major commercial
property projects, including shopping centres and factories where
foreign banks are refusing to rollover their finance to those
Australian Business Investment Partnership will stimulate the
confidence of the investors who have interests in commercial
property projects by minimising refinancing risk.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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An actuarial review of the Invensys Australia Superannuation Fund showed it to be in surplus to the tune of $189.2 million. In mid 2003, the Invensys Group proposed to the trustee that the surplus be repatriated to the principal employer in the group.
CIVs will have flow-through status for tax purposes and similar criteria as the MITs, to encourage foreign investment.
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