Joint Media
Release with
The Prime Minister &
Minister for Small Business
CANBERRA, 3 February 2009. To support jobs
and Australian businesses – especially small businesses - the Government
will fund a 2009 investment tax break for all Australian businesses.
This temporary business tax break will
help Australian businesses boost business investment, bolster economic
activity and support Australian jobs.
Businesses in Australia – especially small
businesses - are the engine of the Australian economy and deserve direct
support during a global recession.
This $2.7 billion 2009 Australian Business
Tax Break is a key element of the Government's $42 billion Nation Building
and Jobs Plan to support up to 90,000 Australian jobs.
The Small Business and General
Business Tax Break 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 its 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 its 2008-09 tax return.
Small businesses can claim an additional
30 per cent tax deduction for eligible assets costing $1,000 or more that
they acquire from 13 December 2008 to 30 June 2009, and install by 30 June
2010.
For eligible assets costing $1,000 or more
that they acquire from 1 July 2009 to 31 December 2009, they 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.
Other businesses can receive the same
deductions for eligible assets greater than $10,000.
This will further boost business
investment and confidence in the Australian economy in the face of the
global recession.
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.
More detailed information is attached.
Treasury will also release draft legislation for public consultation.
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