Task

You are the accountant employed by a surveying company in Darwin, Australia. For the financial year to date the gross income of the company is $1,350,000. The company is not associated with any other entities, ie it is not the subsidiary or parent company and does not receive any other sources of income other than from surveying.

The company's Chief Executive Officer has come to you and asked you to provide her with ideas for tax planning before 30 June, 2009. You are desperate to provide an efficient tax plan as the CEO has promised you a $10,000 pay bonus if your tax plan is effective. You have heard something in the media about this 'investment allowance' but are unsure about the details. To ensure your success you need to create a tax planning team. The goal of the team is to establish whether or not the company is or could be entitled to the 'investment allowance'.