How to take Advantage of The Investment Tax Break from Kevin Rudd
Posted May 6th, 2009
A new tax break for businesses has been introduced by the Federal Government of Australia. The break allows up to a 30% deduction on tax on capital, including the standard asset depreciation deduction.
What are the key features of the tax break?
- If your business is turning over up to $2,000,000 per annum: You could earn up to 30% on tax deductions on new purchases on depreciating assets of value exceeding $1000.
- If your business is turning over more than $2,000,000 per annum: You could earn up to 30% on tax deductions on new purchases on depreciating assets of value exceeding $10,000.
What are the requirements for eligibility?
You must enter contract and create of purchase the asset before the 30th of June 2009.
The asset must ready for service by the 30th of June 2010.
If you cannot make the installation or commence service by June 30th 2010, you are allowed up to December 30th 2010 to do so. However, your tax break will be reduced from 30% to 10%.
I want to cut back on expenses, what if can’t afford to invest?
While the present economic state isn’t very encouraging for business owners to take risks, there is no better time to invest than now.
Interest rates are at an all time low in Australia, at an official RBA cash rate of 3%. If you consider using credit to fund your investments, getting a fixed rate is definitely recommended, as it’s almost certain to not get lower than it’s current figure.
More features and the federal government’s online FAQ on the tax break:
- Second hand assets cannot be claimed
- Only tangible assets are eligible. Computer software for instance, is not tangible therefore is not covered.
- Cars can be claimed as depreciating assets, with a claimable value of up to $57,180. Hence, 30% of the maximum equates to a potential $17,154 rebate.
- Find out more about the tax break from the government’s official release at: http://www.treasury.gov.au/documents/1505/PDF/Small%20Business%20FAQ%202.pdf
No related posts.
Comparison of our Top Credit Card Offers
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual Fee | Cash Advance Rate (p.a.) | |||
|---|---|---|---|---|---|---|
Bankwest Breeze MasterCard | A low interest rate on everyday purchases with a low balance transfer offer | 0% for 6 months (reverts to 10.99% ) | 4.99% for 9 months | $49 | 21.99% |   |
Citibank Clear Platinum Card | A low interest rate offer on balance transfers and purchases | 11.99% | 0% for 12 months with 3% handling fee | $99 | 21.74% | |
St.George Vertigo | An introductory offer on balance transfer and a low annual fee | 13.24% | 0.99% for 6 months | $55 | 21.49% | |
Virgin Flyer Credit Card | Earn 1 velocity point per $1 spent, plus an introductory offer on balance transfers | 20.99% | 1.9% for 12 months | $50 (for first year thereafter $99) | 20.99% | |
Westpac 55 Day Credit Card | No annul fee for the first year with a low rate on balance transfers and purchases | 0% for 5 months (reverts to 19.59% ) | 3.99% for 6 months | $0 annual fee for the first year ($30 thereafter) | 21.49% | |
Add a Comment