Business Tax Break

Businesses can claim an additional tax deduction when they buy certain assets, and when they spend money to improve existing assets, for a limited time. This is called the Small Business and General Business Tax Break ("business tax break" for short).

The Australian Government announced the tax break as an 'investment allowance' in December 2008. It was aimed at helping businesses meet the challenges of the economic downturn. The government later extended this tax break in the May Budget to allow small businesses to claim a 50% tax deduction on eligible assets bought by 31 December 2009.

The business tax break is an extra tax deduction which is available on the plant and equipment you need to buy to keep your business running. It covers new, tangible, and depreciating assets; as well as improvements or additions you make to existing assets.

NOTE: Because the tax break is temporary, deadlines apply. This means you will need to buy and use or install the asset within a set timeframe.

NOTE: The business tax break is in addition to the deduction for the decline in value that your business can claim for an eligible asset.

MORE: See who is eligible for the business tax break

 

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