"Gday Everyone Dave here. . . . . .
As you may be aware the financial year has now closed.
I
expect that you have either heard from or had a chat with your
accountant about year end tax planning and you may have squeezed in a few more tax
deductions.
If not, then one that is of particular interest this year is the 50% investment allowance for small businesses (ie businesses with a turnover of less than $2m) or the 30% investment allowance for businesses with a turnover greater than $2m.
In
short, if a small business spends $1,000 or more on a new or near new
item of plant, equipment, furniture, motor vehicles (ie items that
you'd normally depreciate) then, in addition to normal
depreciation, you will also be entitled to a one-off upfront tax
deduction equal to 50% of the items cost. In the case of non-small
businesses then you must spend at least $10,000 per item in order to
receive an extra 30% tax deduction.
In
the case of small businesses you have until 31 December 2009 to acquire
eligible items. However, only items acquired this financial year can
be claimed this financial year. Items acquired between 1 July-31
December 2009 may be claimed next year.
Finally,
if you're making a tax loss this year then clearly the extra deduction
does nothing except to amplify your loss (and I'm not sure if you can
carry it forward), in which case you might be better off holding onto
your cash rather than spending it!
I
don't know all the answers or all the eligibility criteria so I'd
strongly recommend that you please talk to your accountant about this
opportunity ASAP.
Regards
Dave Windsor "
David Windsor has extensive knowledge with over
15 years experience mentoring entrepreneurs to start-ups, to SMEs to corporates,
sharing his legal, commercial and strategic know-how, and network, with the
prime focus of achieving growth for his clients – it's nice to have his know-how splattered here for all to see and share. Thanks Dave!