Time is running out ….

If you wish to take advantage of the business tax break, you should act fast.

To take advantage of the extra 50% business tax break, businesses with an annual turnover of less than $2 million you need to commit to buy an eligible asset, or invest in an existing asset, by 31 December 2009.

However, you have until 31st December 2010 to first use, install or improve the asset to qualify for the additional deduction.

You will then be able to claim the deduction in the income tax return for the year in which you first used, installed or improved the asset if you meet the conditions for the deduction in that year:

To qualify for the extra 50% tax deduction, you also need to:

• meet the $1,000 minimum threshold on purchases
• use the asset principally in Australia and principally for business
• be able to claim a deduction for the asset’s decline in value.

 There are also deadlines for the 30% and 10% business tax break that are available to businesses with an annual turnover of $2 million or more.

Important:  What is meant “to commit by 31st December 2009”?

• Entering into a contract under which you will hold the asset; or
• start to construct the asset.  However, if finance arrangements, like Hire Purchase are part of the deal, care needs to be taken. 

Please contact us to discuss further.