myBRC editor
Readers, please note: This article has been superseded by a new article: Small Business Tax Break increased to 50% following the announcement of the 2009-10 Federal Budget
Useful for: Understanding how the Government's stimulus package will affect small business
Prime Minister Kevin Rudd announced yesterday a $42 billion stimulus package in an attempt to steer Australia away from a recession. For small business, the major component of the package is extra investment tax breaks of up to 30% on eligible assets.
The tax breaks, worth up to $2.7 billion are designed boost business investment and economic activity and support Australian jobs.
The tax breaks will mean:
→ A small business that buys and installs a $2,000 computer before the end of June 2009 can claim an additional $600 deduction in your 2008-09 tax return.
→ A business that buys and takes possession of a $60,000 backhoe by the end of June 2009 can claim an additional $18,000 deduction in your 2008-09 tax return.
Small businesses can claim an additional 30 per cent tax deduction for eligible assets costing $1,000 or more that you acquire from 13 December 2008 to 30 June 2009, and install by 30 June 2010.
For eligible assets costing $1,000 or more that you acquire from 1 July 2009 to 31 December 2009, you can claim an additional 10 per cent deduction where they are installed by 31 December 2010.
To benefit from this tax break, a small business must have a turnover of $2 million a year or less.
For full details and fact sheets, visit the Treasury website and read SmartCompany's article How does the $2.7 billion tax break work for SMEs?