Small Business Tax Breaks

To support jobs and Australian businesses – especially small businesses - the Government will fund an investment tax break for all Australian businesses. This temporary business tax break will help Australian businesses boost business investment, bolster economic activity and support Australian jobs.

The Small Business and General Business Tax Break examples are;
A small business that buys and installs a $2,000 computer before the end of June 2009 can claim an additional $600 deduction in its 2008-09 tax return. A business that buys and takes possession of a $12,000 Server Upgrade by the end of June 2009 can claim an additional $3,600 deduction in its 2008-09 tax return.

Small businesses can claim an additional 30 per cent tax deduction for eligible assets costing $1,000 or more that they acquire from 13 December 2008 to 30 June 2009, and install by 30 June 2010. For eligible assets costing $1,000 or more that they acquire from 1 July 2009 to 31 December 2009, businesses can claim an additional 10 per cent deduction where they are installed by 31 December 2010.

To benefit from this tax break a small business must have a turnover of $2 million a year or less. Other businesses can receive the same deductions for eligible assets greater than $10,000.

Please seek professional advice from your accountant to confirm your business entitlements. For more detailed information go to the various Media Releases and Fact Sheets , the Tax Bonus for Working Australians Bill , or the Household Stimulus Package Bill.

If you have any questions regarding any information in this newsletter, please contact the Sales Team on (03) 9614 1000.