9 October 2009
As the Federal Government starts to wind back some of its stimulus package owners of small and micro businesses should move now if they are considering taking advantage of the 50% tax break on the purchase of assets.
Under the Government’s package business owners with a turnover of less than $2 million per annum can claim a 50% tax deduction on the purchase price of business assets provided they are over $1,000. Assets can include purchases such as plant equipment, business equipment and motor vehicles for business use.
But businesses need to take delivery of the asset before 31 December this year. In most cases there is time to consider and order your purchase but form some items including specialist equipment and even cars, many are recommending that business need to move now to make sure they are eligible.
The stimulus package has certainly had a positive result on the Australian economy with the result that consumerism has reached greater than expected levels. The Australian GDP showed that there had been a 0.6% growth for the June quarter and well as a 0.6% for the year to June. Australia certainly appears to have kept its head above the technical recession level – but there are signs that the Government and the Reserve Bank might move to slow things a little so that the country can resist tougher times ahead.
Now might be the time to speak with your accountants and financial advisers to ensure that your plans take advantage of the opportunities under the stimulus package and that your are well prepared for the future.
