Small business dealt a break on new investment


The Federal Government will fund an investment tax break for all Australian businesses under the economic stimulus package unveiled this week

The Federal Government will fund an investment tax break for all Australian businesses under the economic stimulus package unveiled this week.

Prime Minister Kevin Rudd says the temporary business tax break will help businesses boost business investment, bolster economic activity and support jobs.

The $2.7 billion tax break will allow small businesses – those with turnover of $2 million a year or less – to claim an additional 30 percent tax deduction for eligible assets costing $1,000 or more that they acquire from December 13, 2008 to June 30, 2009, and install by June 30, 2010.

For eligible assets costing $1,000 or more that they acquire from July 1, 2009 to December 31, 2009, they can claim an additional 10 percent deduction where they are installed by December 31, 2010.

Other businesses can receive the same deductions for eligible assets greater than $10,000.

Assets eligible for the allowance are new tangible depreciating assets and new expenditure on existing assets used in carrying on a business for which a deduction is available under the core provisions of Division 40 (Capital Allowances) in the Income Tax Assessment Act 1997.

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