Take Advantage of the Small Business Investment Allowance
Filed under: Australian News, Business, Finance and Investment
The current Financial Year 2008-2009 ends at midnight next Tuesday 30th June, so now is a good time to take advantage of any tax benefits that you are entitled to.
As part of the Australian Labor Government’s measures to try and stimulate the economy, the Small Business and General Business tax break legislation went into effect on the 22nd of May 2009.
The allowance in a nutshell is this:
if you run a small business with a turnover of less than $2 million and buy an eligibile depreciating asset costing over $1000, you can make an additional one-off 50% tax deduction. This is in addition to the all the normal tax deductions on assets used to earn an income.
If your business is bigger, you still get an additional deduction, but it’s only 30%.
Full details can be found here on the Australian Taxation Office’s website:
The website smartcompany.com.au has a well-written explanation in their article “New details on the 50% small business tax deduction“.
Some examples of tangible depreciating assets include new computers, peripherals, furniture, vehicles and tools. Computer Software does not count as it is not considered tangible and does not depreciate.
