Under the current legislation, Small Business is entitled to claim a 50 per cent bonus tax deduction, for eligible assets, costing more than $1000 (this includes new cars) acquired by 31 December 2009, and installed ready for use by 31 December 2010.
Under the terms of the legislation, a Small Business is defined as having a turnover of less than $2 million per annum.
The recent VFACTS figures, released by FCAI, for October, show new vehicle sales are up on a year ago for the first time in 16 months. The Small Business tax break has contributed to this increase, as suggested by the improvement in the light commercial sector, which is up 3.4 per cent.
However, VACC is concerned that a number of business vehicle and fleet managers have not yet fully utilised the investment allowance.
“The Federal Government has provided a positive stimulus to the new vehicle sector and employers are advised to make the most of it,” VACC Executive Director, David Purchase, said.“Any Small Business owner considering upgrading or improving the company vehicle, or fleet, should contact their local new vehicle dealer today. They should use the Small Business tax break to purchase the best and safest vehicle for the job.“The Government has stipulated that the installation, or delivery, of an eligible asset does not have to be completed until 31 December 2010. However, the paperwork must be signed-off by the end of this year.“VACC urges Small Business owners to consider maximizing the Small Business tax break. But they have to act fast as time is running out. The Government has shown with other incentive schemes that once they run their course, that’s it. The Small Business tax break will not be extended, hence the sense of urgency for employers and managers, to take advantage of this one before it ends,” Mr Purchase said.