30% Tax Break - What does this mean for you? Government announces additional tax break on equipment for business On Tuesday, as part of the $42 billion Nation Building and Jobs Plan, the government announced further tax breaks to bolster economic activity. We would like to provide a brief summary of the additional tax breaks you may be eligible for. Whilst still to be legislated they provide a significant incentive to purchase capital assets and take advantage of the increased allowances. What is the Tax Break? A once off bonus deduction of 30 percent will be allowed for tangible depreciating assets used in the running of a business. The tax break is offered on new assets and new expenditure on existing assets. Who qualifies for it? * Small business with annual turnover of less than $2m can claim a bonus on assets costing more than $1,000. * Business with annual turnover greater than $2m can claim the bonus on assets over $10,000. Are there any deadlines I should know about? * The tax break provides a bonus 30 percent deduction on assets acquired, contracts entered into or construction started between 13 December 2008 and the end of June 2009, and provided that those goods are installed ready for use by the end of June 2010. * If the time frames above are unable to be achieved then instead of the 30% bonus a 10 percent bonus deduction is available for equipment , acquired, ordered or construction started between 1 July 2009 and the end of December 2009, and provided the goods are installed ready for use by the end of December 2010. For more information please contact Jason Neil of Interlease 0403 963 930 or (02) 9299 3119.