14 Aug 2009

ATO - Business Tax Break

by Darren

The Australian government has offered an additional tax deduction for businesses purchasing new plant and equipment up to 31 December 2009. This incentive is part of ensuring businesses can meet the challenges posed by the economic downturn. This incentive is eligible for businesses purchasing assets by 31 December 2009, which are used in Australia and whose annual turnover is less than AUD $2 million. Your business structure can be in the form of a company, partnership, trust or even a sole proprietor. If your annual turnover is less than AUD $2 million then you can claim 50% of the cost of the asset as a deduction in the current year. If you turnover exceeds AUD $2 million and you bought assets prior to 30 June 2009 then you are entitled to claim a deduction of 30% of the cost. Finally for those assets purchased between 1 July 2009 and 31 December 2009 a 10% of the cost is an allowable deduction. The cost of the asset that is purchased includes the actual amount paid for the asset (excluding GST) and the costs of installation, delivery or any improvements that are made to the The best thing about this tax break is that it has no impact on deductions for your claim to a deduction for an depreciation. For full details of the incentive please refer to the Small business and general business tax break section of the ATO website.

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