Latest Update 12th May 2009:
SMALL BUSINESS TAX BREAK BOOST      [Media Release]

The Rudd Government will provide another major boost to its highly successful Small Business and General Business Tax Break, providing vital stimulus to support jobs and help small businesses doing it tough in the global recession.

Small businesses will now be able to claim a bonus tax deduction of 50 per cent - up from 30 per cent previously of the cost of eligible assets acquired between 13 December 2008 and 31 December 2009, and installed by 31 December 2010.

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 the 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.

This major boost will support jobs and businesses all over the country. It accompanies the powerful steps taken by the Rudd Government to stimulate the economy so that small businesses have customers walking through their doors.

The expanded Tax Break will be available to small businesses with a turnover of less than $2 million.

All 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.

Small businesses only need to invest a minimum of $1,000 per asset in order to qualify for the Tax Break. Under enhancments to the Tax Break announced in March 2009, they can also amalgamate their expenditure on batches and sets of assets in order to meet this threshold.

For more detailed information about the Tax Break and the expansion for small business, click here.

14th May 2009:
FEDERAL GOVERNMENT BOOSTS THE TAX BREAK!

Budget 2009: Small business tax break boosted from 30% to 50%

The Federal Government will increase the business tax break for assets purchased before the end of 2009 from 30% to 50%.

This will apply for companies with turnover of less than $2 million.

The small business tax break was introduced earlier this year as part of the Rudd Government’s stimulus measures, and has been applauded by business groups as a way of assisting growing businesses through the downturn and stimulating economic growth by pulling forward investment.

Under the original model, the tax break was set at 30% for assets over $1000 that were purchased between 13 December 2008 and 31 December 2009 and installed by 31 December 2010.

But under the new 50% tax break, the business will be able to claim a tax deduction of $15,000 (that is, 50% of $30,000).

Excerpt from Smart Company.com.au, 12/05/09.