Small business and general business tax break

PLEASE NOTE: The deadline for the Investment Allowance has now passed. Please review our information below keeping in mind eligibility of transactions based on the timeline information provided by the Australian Taxation Office.


Take advantage of the investment allowance of 50% for small business (10% for general business - over $2mil turnover).

 

Small business Investment Allowance - 50%

The federal government is providing a tax break of 50% for small businesses with turnover less than $2m

 

Businesses are encouraged to bring their capital expenditure plans forward to take advantage of this tax break.

 

A small business can claim an extra 50% tax deduction for new assets, or upgrades to existing assets for capital investment undertaken between December 13 2008 and December 31, 2009.

 

General business Investment Allowance - 10%

Larger businesses whos turnover is greater than $2 million pa. can claim an extra 10% tax deduction for new assets, or upgrades to existing assets for capital investment undertaken prior to December 31 2009.

 

Small business whose turnover is less than $2,000,000 pa can claim the deduction for all eligible assets $1,000 or more. While business with turnover greater than $2,000,000 can claim for all eligible assets over $10,000.

 

It is important for businesses to begin organising their capital equipment needs early to avoid missing out on this important tax break.

 

 

Example
A small business with turnover of $1,800,000 pa purchases a new notebook and take delivery on the 15th December 2009 for their field staff totalling $2,000. Under the proposed tax break they can claim an additional $1000 in deductions for their 2009-10 tax return.


A larger business with turnover greater than $5,000,000 purchases a new printing press on the 20th December and have it installed and in use on the 19th April 2010, valued at $100,000. Taking into account the proposed tax break on offer they can claim an additional $10,000 in deductions for their 2009-10 tax return.

 

Act now...

Now is a good time to analyse your current capital equipment, identify deficiencies or opportunities and plan out what you need. Once you have decided on your needs, plan out when and how you will acquire the new equipment.

 

How much income could this new equipment generate for you?

Financing your new purchase will ensure you reap the benefits available through additional deductions and the added efficiencies of new equipment today. Whilst allowing you to spread the cost of the equipment over a number of years and future earnings.

 

Why not contact your Alliance Equipment Finance Relationship Manager now to organise your no obligation finance pre-approval. You can then organise the purchase and installation/delivery within the designated time frames to avoid missing out.

 

What equipment do we finance?

Remember, Alliance Equipment Finance can assist you with all your equipment finance needs. Below is just a few examples of the equipment we finance:

  • Desktop Computers & Notebooks

  • Networking Equipment

  • Mail Room Equipment

  • Furniture

  • Multi Function Devices (copy/scan/fax)

  • Motor Vehicles

  • Facsimilies

  • Video Conferencing Equipment

  • Office Furniture

  • Telephone Equipment

  • Large Format Printing Equipment

  • Manufacturing Equipment

  • Security Equipment

  • Materials Handling Equipment

  • Communications Equipment

  • Medical Equipment, plus much more...

 

 

Key dates to consider - Small Business (less than $2 mil turnover)

 

13 December 2008 Date from which new purchases can be claimed
31 December 2009 Date by which orders must be placed
31 December 2010 Equipment must be installed/in use (if required)

 

 

 

Key dates to consider - General Business (greater than $2 mil turnover)

 

13 December 2008 Date from which new purchases can be claimed
30 June 2009 Cut off for the purchase of equipment (enter into binding contract to acquire equipment) for 30% allowance.
1 July 2009 - 31 December 2009 Secondary cut-off (Reduced 10% allowance still applies) for contracts dated after 30 June but prior to 31 December 2009



To find out more about the allowance visit the Australian Taxation Office website:

 

http://www.ato.gov.au/print.asp?doc=/Content/00193781.htm

 

Disclaimer:

Any advice provided should be taken as a general information only.
It is important that before you consider acting on this information you speak to your accountant for specific financial advice.