Tax breaks for business

5/3/09

As part of its stimulus package to boost the economy, the Federal Government recently announced an additional tax deduction for businesses on new depreciable asset purchases this financial year. For assets acquired from 13 December 2008 to 30 June 2009 and installed by 30 June 2010, the deduction will be equal to 30% of the asset's cost.

The deduction is on top of the usual capital allowance deduction available for depreciating assets and is claimed in the business's income tax return for the year.

For businesses with an annual turnover of $2 million or less, the minimum expenditure threshold of $1,000 will apply. For other businesses, the minimum expenditure threshold is $10,000.

Please contact your accountant to confirm eligibility for the additional tax deduction for your business.