Government Announces New Tax Breaks
20 Apr 09
It makes financial sense to bring forward any AV purchases you are planning to make this tax year.
This extra tax depreciation deduction:-
- is a one-off 30% deduction for eligible assets purchased between December 13, 2008, and June 30 2009, and installed for use before the end of December 2010,
- will only be 10 per cent of the cost if the asset is bought between July 1, 2009, and December 31, 2009, and still installed before the end of December 2010,
- can be claimed on top of the temporary 10% investment allowance announced by the Government last December,
- is also in addition to the usual capital allowance deduction claimable for the asset as part of the business's income tax return,
- can only be claimed in the income year in which the asset is installed ready for use,
- is for small businesses with a turnover of $2 million a year or less. (Other businesses can receive the same deductions for eligible assets greater than $10,000),
- is applicable to small business entities that spend a minimum of $1,000 per asset . All other businesses will need to meet a minimum expenditure threshold of $10,000 per asset.
Just remember that it does require an outlay of funds upfront before the deduction can be claimed in the tax return.
For more details on these tax incentives, please speak to your Accountant.
And Contact Us today and we can help plan for your AV requirements.