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Small Business & General Business Tax Break
To support jobs and Australian business, especially small businesses, the Australian Government will fund an investment tax break for all businesses.
The Small Business and General Business Tax break will mean:
- Small businesses (turnover below $2m) will be able to access the tax break for assets costing $1,000 or more
- For larger businesses (turnover exceeding $2m) the asset threshold is $10,000
Assets acquired from 13 december 2008 to 30 June 2009
An additional deduction will be given, equal to 30% of the asset's value. This is in addition to the normal capital allowance 9depreciation) deduction.
Assets acquired between 1 July and 31 December 2009
An additional deduction will be given, equal to 10% of the asste's value
Example
A small business that buys a $2,000 computer by 30 June 2009 can claim an additional $600 deduction in their 2008-09 tax return
Our recommendation
If you are considering purchasing business assets in the next 12 months we advise, where possible, to bring the purchase forward prior to 30 june 2009 for the 30% deduction or prior to 31 december 2009 for the 10% deduction
More information and exact rulings are on the Australian Taxation Office website