The federal government's recently announced business tax break means that purchasing earthmoving and construction equipment has become much more affordable, says Sean Taylor (pictured above), general manager of construction at Komatsu.

In February, the government's $42 billion Nation Building and Jobs Plan included an investment tax break for all Australian businesses, designed to help boost business investment and support jobs. Under the plan, businesses such as civil contractors, quarries, plant hirers and owner-operators are able to claim a bonus deduction of 30 per cent for eligible assets including earthmoving and construction and other capital equipment, costing $10,000 or more.

In the recent federal Budget, however, the bonus deduction was increased to 50 per cent for businesses with an annual turnover of less than $2 million.

To be eligible for the 30 per cent investment allowance, businesses must acquire the equipment under a contract entered into between December 13, 2008 and the end of June, 2009. It must also be ready for use by the end of June, 2010.

The latest 50 per cent allowance fopr small business applies to equipment costing $1,000 or more and purchased between December, 2008 and the end of 2009.

"Through Komatsu Australia Corporate Finance, we can advise businesses on the best way to tailor their equipment finance to optimise this tax break and maximise productivity," Taylor said.