Investment allowance

An investment allowance is a fiscal incentive that permits entrepreneurs and commercial property investors to claim an immediate deduction against profits for qualifying business assets. Rather than relying solely on depreciation over multiple years, a defined portion of investment costs is deductible upfront.

This generates tax savings in the year of acquisition. The scheme applies to qualifying assets such as renovations, building improvements, machinery, and sustainable property upgrades. Specific criteria, thresholds, and asset categories determine eligibility. Rules vary by jurisdiction and are subject to regular legislative updates.