Infogenesis
Navi
News
Catch Tax Breaks on Cap-Ex in 2009
In February, the Prime Minister and the Minister for Small Business announced an investment tax break for all Australian businesses, in the form of an Investment Allowance. Draft legislation introducing the Investment Allowance was tabled in the House of Representatives on March 19, 2009. It is anticipated that it will be passed by the Federal Parliament, and become law in May.
An incredible opportunity to maximise your 2009 IT Budget...
The proposed Investment Allowance would benefit InfoGenesis' customers planning on refreshing existing point of sale hardware or purchasing additional POS equipment over the next 12 months. In times of uncertainty, the proposed Investment Allowance can provide a smart way to utilise and maximise your IT budget.
What does it mean for your organisation?
A temporary tax break that provides an additional tax deduction for eligible assets acquired from 31 December 2008 to 30 June 2009 and installed before 30 June 2010 equal to 30% of the asset's cost.
For assets acquired between 1 July 2009 and 31 December 2009 and installed ready for use before 31 December 2010, the deduction is 10% of the asset's cost.
What is included?
New tangible depreciating assets and new expenditure on existing assets such as point of sale terminals, printers, scanners and servers.
The amount of a taxpayer's investment in an asset needs to exceed a certain threshold and the asset must be used principally in Australia for the principal purpose of carrying on a business.
Second-hand assets are not eligible for the tax deduction.
Operating software, required to make a machine functional, and not separately identified within an invoice is included.
It excludes most intangible assets, including services, middleware, database software and all application software.
Example:
Fictitious data; for illustration purposes only.
The Tax Break can be claimed in the income year that the asset is first used or installed ready for use. The Tax Break will be able to be claimed as part of the taxpayer's income tax return. The new investment threshold is $1,000 for small business entities and $10,000 for all other taxpayers.
Consider leasing and catch your Tax Break straight away...
Eligible assets held under a lease qualify for the Tax Break. As the Tax Break would then be claimed by the leasing company, your organisation gains the benefits of lower lease payments straight away. This mean that benefits can be immediately reflected within your IT budget, rather than forming part of the consolidated company tax return.
Want to know more...
If you would like to find out how InfoGenesis can assist your organisation gain the most out of this incentive, please contact Justin Reynolds on 02 9922 0808 or at jreynolds@infogenesis.com.au.
To learn more about the Investment Allowance, including how to claim the Tax Break and answers to FAQs, go to http://www.treasury.gov.au/content/small_general_business.asp?NavId=022 or consult your company tax advisor.
February, 2009, the Prime Minister and the Minister for Small Business announced an investment tax break for all Australian businesses, in the form of an Investment Allowance. Draft legislation introducing the Investment Allowance was tabled in the House of Representatives on March 19, 2009. It is anticipated that it will be passed by the Federal Parliament, and become law in May.
