Christmas is coming early for you developer who has been begging for a faster computer. The Small Business and General Business Tax Break was introduced as an investment allowance a year ago, to boost business investment during the global financial crisis. It has been extended in this year’s Budget to allow small businesses (those turning over less than $2 million) to claim an extra 50% tax deduction on eligible assets bought by 31 December 2009, over last year’s 30%. You must spend more than $1,000 per capital asset to be eligible for the deduction. You do not have to apply to get this deduction, simply to purchase before the new year and prepare to deduct it on your tax return under the Business and Professional schedule.
As the deadline for eligible purchases draws closer, the Australian Tax Office has developed some online information materials to help explain the business tax break to businesses. You can save a little money on consulting with your lawyer about the specifics of the tax break by going over this entry from Australian law firm Moore Stephens containing all the most common questions asked by their clients.
