An article in the Australian Financial Review on Friday about businesses buying art for the office because of the tax break investment allowance demonstrated the absurdity of aspects of the tax break. Thanks to the treatment of software as an intangible, it is not eligible for the tax break. However, art is a tangible asset and therefore qualifies.
Politicians from both sides need to resolve this. Software is a good investment for business. Especially Australian software developed for Australian businesses.
Art, while nice in an office, will not lift business productivity the same as good software.
If our politicians wants a robust IT industry and greater efficiency from business then they need to address the treatment of software and make it eligible for the tax break.
I have written again to the Treasurer’s office about this, in response to their last letter to me.