Aeromil Pacific is pleased to provide our valued clients with this important update in relation to the investment allowance and its applicability to aircraft.  With the rising Australian dollar and this Investment Allowance, this may be just the time to consider a new aircraft purchase.

Investment Allowance for Business

The Government has announced a tax break in the form of an investment allowance for new capital expenditure and this includes the purchase of new aircraft.  In summary, a taxpayer can obtain the following investment allowance if it satisfies the criteria in the table below:

a) Small Business Entities

New investment threshold	Investment time: 31/12/09 First use time by: 31/12/10
Small business (turnover < $2m) - $1,000	50%

This tax break may result in the following significant discounts on the price of a new aircraft, subject to meeting the eligibity criteria:

Aircraft	2009 Base price ex-factory USD	Discounted base price ex-factory
172S Skyhawk	297,000	252,450
182T Skylane	384,500	326,825

b) Other Business Entities

New investment threshold	Investment time: 13/12/08 to 31/12/09 First time use by: 31/12/10
Other business (turnover > $2m) - $10,000	10%

It is a very good time to consider new aircraft acquisitions as this can effectively provide a 15% or 3% discount on the purchase price, if you act soon and meet the eligibility criteria.

We also understand that the investment allowance will not be apportioned for any non-business use of the aircraft as long as the taxpayer can demonstrate that at the time of use the asset was to be used in Australia and for the principal purpose of carrying on a business.

We invite you to contact us to discuss your aircraft requirements by calling

Michael Keenan on 02 8713 1190 or via Email.



Australian Taxation Office website can be found here.