Legislation that will provide business with much stronger incentives to invest in new assets passed through the Australian Parliament yesterday.
Small businesses with a turnover of less than $2 million per year will now be able to claim a bonus tax deduction of 50 per cent on the cost of eligible assets worth $1000 or more acquired between 13 December 2008 and 31 December 2009.
The already announced tax break for larger businesses is part of the legislation titled Tax Laws Amendment (Small Business and General Business Tax Break) 2009 that has passed through Parliament.
The path has been cleared for small businesses to invest in new assets such as computer hardware, shop fittings and business vehicles and to make capital improvements to existing machinery and equipment.
The tax break will have the double benefit of stimulating the economy in the face of the global recession and helping to create more productive businesses as the economy recovers.
This new tax break is part of the Government's nation building for recovery plan.
Media Contact: Chris Ward 0418 424 654