Small Business Tax Break Boost

The Rudd Government will provide a major boost to its Small Business and General Business Tax Break, to help small businesses doing it tough in the global recession.

Small businesses will now be able to claim a bonus tax deduction of 50 per cent – up from 30 per cent previously off the cost of eligible assets acquired between 13 December 2008 and 31 December 2009, and installed by 31 December 2010.

The increased Tax Break provides small businesses with an even greater incentive to invest in new capital items, such as computer hardware and business vehicles, and to make capital improvements to existing machinery and equipment.

The expanded Tax Break will be available to small businesses with a turnover of less than $2 million.

All other businesses can continue to access the Tax Break at 30 per cent for eligible assets contracted for prior to 30 June 2009 and 10 per cent for eligible assets that they commit to investing in between 1 July 2009 and 31 December 2009.

Small businesses only need to invest a minimum of $1,000 per asset in order to qualify for the Tax Break. Under enhancements to the Tax Break announced in March 2009, they can also amalgamate their expenditure on batches and sets of assets in order to meet this threshold.

More detailed information about the Tax Break can be seen in the press release by the treasurer Click Here, or by follow this link to the ATO Website.

Please make sure you consult with your accountant before making these new purchases.
Don’t forget that Noble Financial Services can help you with financing the purchase of the new ‘asset’