The Small Business & General Business Tax Break has been designed to boost the economy by allowing business to claim additional tax deductions for most new tangible assets. Businesses will be able to claim a 30% additional tax deduction on most new tangible assets purchased or ordered under contract on or after the 13th December 2008 but before the 30th June 2009. Some conditions apply, including a minimum expenditure threshold depending on the annual turnover of the business. If the new tangible asset is purchased or ordered under contract after 30th June 2009 but before 31st December 2009 a reduced 10% allowance is available provided some conditions are met. The additional deduction is claimed via the yearly income tax return and is in addition to the usual depreciation rates applicable on such assets. Not all new tangible assets are eligible. Assets excluded are: Trading Stock, Land, Capital Works such as buildings and construction expenditure, Intangibles such as software and intellectual property, cars claimed under the cents per km method, Horticultural Plants. For more, read the links to the ATO web site, the legislation and explanatory memorandum below. http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/00175431.htm http://www.treasury.gov.au/documents/1487/PDF/Exposure_Draft_SB.pdf http://www.treasury.gov.au/documents/1487/PDF/Explanatory_Memorandum.pdf AcctWeb
18th-March-2009 | 