Additional small business and general business tax break from 13 December 2008
The Government will expand the small business and general business tax break announced in February. Small businesses will now be entitled to a bonus deduction of 50% where they acquire an eligible asset between 13 December 2008 and 31 December 2009 and install it ready for use by 31 December 2010. The previously announced 30% and 10% bonuses will continue to apply for all other businesses.
The additional small business tax break will allow small businesses with turnover of less than $2 million to claim a bonus tax deduction of 50% of the cost of eligible assets costing more than $1,000. Eligible assets include tangible depreciating assets, such as computers and vehicles, and new expenditure on existing assets used in carrying on a business for which a deduction is available under the capital allowance provisions of the Income Tax Assessment Act 1997.