Call: +61 3 9802-5288
click to email
or fax: +61 3 9803-8296
|
|
50% Investment Allowance*
Royal Assent on 22 May 2009
On 19 March 2009 a Bill was introduced in to Parliament to enact the allowance measures.
The Bill amends the income tax law to provide a temporary bonus income tax deduction (of 10 per cent or 30 per cent) for new investment in tangible depreciating assets undertaken between 13 December 2008 and 31 December 2009.
On 12 May 2009, the Treasurer announced in his budget speech, the allowance would be increased to 50 per cent for small business entities that make an investment in an eligible asset before 31 December 2009.
The modified Bill received Royal Assent on 22 May 2009.
Eligible Assets*
Tangible depreciating assets for which a deduction is available under section 40-25, including:
- Cars - except those using the "cents per kilometre" method.
- Tangible depreciating assets used by small business entities and allocated to a pool.
- Tangible depreciating assets used in R&D.
STIMULUS PLAN*: tax breaks
Source: Mark Davis | February 4, 2009 – The Age
OWNERS of small businesses will gain a special tax break if they buy new equipment ranging from computers and fax machines to cars and industrial machinery before the end of the financial year.
As part of its latest economic stimulus package, the Federal Government is offering small businesses a tax deduction of 30 per cent of the cost of new capital equipment worth more than $1000 so long as it is bought by June 30 and installed before the year's end.
The Government gave the examples of a business buying a $2000 computer, which would attract a $600 deduction against its tax liability, and a firm buying a $60,000 backhoe, which would gain an $18,000 deduction.
The tax deduction will be available for any business with a turnover of $2 million a year or less. It will fall to 10 per cent for equipment bought from July until the end of December for installation by the end of 2010.
Bigger businesses will be eligible for the same tax deductions but will have to spend at least $10,000 on new equipment to qualify.
The Treasurer, Wayne Swan, said the tax break would help businesses increase their investment spending, which would bolster economic activity and support jobs.
"Businesses in Australia, especially small businesses, are the engine of the Australian economy and deserve direct support during a global recession," Mr Swan said.
The Government expects the tax break, which will come on top of existing deductions to business for depreciation of capital equipment, will cost it $2.7 million in foregone revenue over the next three financial years.
* Disclaimer
Car-Lease.com.au makes no representation or warranty that any enabling legislation will be enacted whether in a form consistent with that described above or otherwise, and hereby disclaims any and all liability. You are advised to seek independent professional advice specific to your circumstances in connection with the proposed allowance.
|
|
Please call: +61 3 9802-5288; Fax: +61 3 9803-8296; or click to email
for finance and leasing assistance.
|
|
|
There are no available products under this category.
|
|
|
|
|
|
more...
