Budget provides continuation of small business tax break

Submitted 18/05/2009

My-business e news

 

The Federal Budget contained a number of initiatives that will help small business. The most significant was the expansion of the Small Business and General Business Tax Break so that small businesses can claim a bonus 50 per cent tax deduction for eligible assets costing more than $1,000 acquired from 13 December 2008 until 31 December 2009, and installed ready for use by 31 December 2010.

This is up from 30 per cent announced earlier this year and extends the period of eligibility by six months. To benefit from this Tax Break a small business must have a turnover of less than $2.0 million a year. The expanded Tax Break will be available to small businesses with a turnover of less than $2 million.

Small businesses only need to invest a minimum of $1,000 per asset in order to qualify for the Tax Break. They can also amalgamate their expenditure on batches and sets of assets in order to meet this threshold.

There is an opportunity to claim bundled assets under the concession. For example, buying tables, chairs and a sofa for a conference room, which cost more than $1000 in total, could be claimed."