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Tax breaks for small businesses
Small businesses in Australia will be able to take advantage of a bonus tax deduction of 50 per cent of the cost of eligible assets, now that the Small Business and General Business Tax Break legislation has received Royal Assent and is law.
The assets must have been acquired between 13 December 2008 and 31 December 2009, and installed by 31 December 2010.
A joint statement released by the Treasurer of the Commonwealth of Australia, Wayne Swan and Minister for Small Business Independent Contractors and the Service Economy, Dr Craig Emerson, said: "Small businesses are the backbone of our economy, employing millions of Australians, but many have faced some tough times during this global recession.
"That's why the Rudd Government has been so determined to help small businesses invest with confidence and take advantage of the opportunities that will come with economic recovery.
"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.
The 50 per cent tax break is available for any business with a turnover of less than AUD$2m. 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.
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