Business Tax Break

The Small Business and General Business Tax Break (business tax break) is a temporary extra tax deduction available on plant and equipment you need to purchase to keep your business going and is available for new, tangible, and depreciating assets. It also covers improvements or additions you make to existing assets. The business tax break is in addition to the deduction for decline in value which your business is entitled to claim for an eligible asset.

If your business (and any businesses you are connected with) turns over less than $2 million a year, you may be able to claim an additional 50% tax deduction if you:

• Carry on a business 
• Buy the asset by 31 December 2009 
• Use or install or improve the asset by 31 December 2010 
• Meet the minimum $1,000 thresholds 
• Use the asset principally in Australia and principally for your business 
• Be able to claim a deduction for the asset's decline in value under section 40-25 of the Income Tax Assessment Act 1997 

If your business turnover is greater than $2 million, you may be eligible to claim a 30% or 10% deduction.

For more information on Business Tax Break, call us on (03) 9763 8989.