Deadline looming for 30% tax break
Businesses with an annual turnover of $2 million or more, are eligible for an additional 30% tax deduction if they purchase or order new tangible depreciating assets between 13 December 2008 and 30 June 2009 and use them or install them ready for use on or before 30 June 2010.
With the 30 June deadline looming, it’s important for business operators to be aware of these dates if they want to benefit from the additional 30% tax deduction.
If you miss the deadline of 30 June 2009, you may still be eligible for the 10% deduction if you purchase or order eligible assets between 1 July 2009 and 31 December 2009 and first use them or install them ready for use, on or before 31 December 2010.
The 10% tax deduction is also available for assets purchased or ordered between 13 December 2008 and 30 June 2009 and first used or installed ready for use, between 1 July 2010 and 31 December 2010.
To be eligible, these businesses need to spend $10,000 or more on qualifying assets – which include new plant and equipment but not second-hand goods, land, trading stock or software.
Provided you meet all the eligibility criteria in the income year, your business can claim these deductions in the income tax return for the year the asset was first used or installed ready for use.
The tax break deduction is in addition to deductions for the decline in value you are entitled to claim for the asset.
For more information:
- phone the business tax break info line on 1300 337 921
- tax agents can call 13 72 86
- visit http://www.ato.gov.au/businesses
