Only Five Weeks Left Until the Small Business Tax Break Ends

MELBOURNE – November 26, 2009: VACC, the peak Automotive Industry body in Victoria, is reminding Small Business owners that if they want to take advantage of the Federal Government’s Small Business tax break, they have to act fast.

There are now only five weeks left until the stimulus package ends at midnight December 31, 2009.

The Small Business tax break enables a business with a turnover of less than $2 million per annum, to claim a 50 percent bonus tax deduction, for eligible assets, costing more than $1000 acquired by 31 December 2009, and installed ready for use by 31 December 2010.

All other businesses have access to a 10 percent bonus tax break for eligible assets contracted by 31 December 2009.

“The Small Business tax break is one of the Government’s better incentive schemes and we urge business owners to take advantage of it,” VACC Executive Director, David Purchase, said.

“It is of particular benefit to employers and managers looking to purchase a new vehicle or fleet.

“The Small Business tax break enables a company to select the vehicle they desire and make a commitment to that purchase by the end of this year, without actually having to take delivery of the vehicle until the end of 2010.

“But time is running out. Five weeks from today, this incentive scheme will end and Government has made it clear that it will not be extended.

“VACC recommends Small Business owners considering upgrading or improving their work vehicle or fleet, speak to their accountant or financial advisor immediately. Before anything else, employers and managers need to establish if they qualify for the Small Business tax break.

“Following that, the Small Business owner can confidently visit the local new car dealer and discuss the suitability and availability of the vehicle.

“The Small Business tax break is also an opportunity for business owners to improve the safety of their vehicle or fleet. The incentive scheme is a fantastic chance for employers and managers to save money and to invest in the long term safety of their employees,” Mr Purchase said.