Two weeks remain on small business tax break

There are now just two weeks remaining before the government’s small business tax break ends.
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The deadline is looming and small business owners have until midnight, December 31 to take advantage of the investment allowance.

Businesses with an annual turnover of less than $2 million can claim the Small Business tax break. They can claim a 50 per cent bonus tax deduction, for eligible assets, costing more than $1,000 providing a commitment is made within the next fourteen days.

Delivery and/or installation of the asset can be any time before 31 December 2010.

Businesses with a turnover of more than $2 million per annum can access a 10 per cent bonus tax break for eligible assets contracted by 31 December 2009.

“We know of many businesses which have taken advantage of the Government’s stimulus package. VACC members have used this opportunity to purchase new computers, new hoists, new dynamometers and other necessary equipment to benefit, improve and expand their companies,” VACC Executive Director, David Purchase, said.“But we are concerned some members of the retail automotive industry will miss out. That is why we are encouraging employers and managers of companies that fit the criteria to contact their accountant immediately.“The Small Business tax break has been particularly helpful in providing an opportunity to upgrade and improve the company vehicle or fleet.”

The November VFACTS data, provided by FCAI, put the increase of 19.9 per cent (14,216 vehicles) compared to the same month last year, down to the Government’s tax incentive.

“There was a 35.4 per cent increase in business vehicle sales last month, proving that many small businesses have been able to buy more appropriate and safer vehicles thanks to the Small Business tax break.“Any small business owner wanting to do the same had better act fast. This investment allowance ends in just two weeks and will not be extended,” Mr Purchase said.

(With Autonews)