As part of the Federal Government's $42 billion stimulus
package announced yesterday, businesses will be entitled to an
additional one off deduction on the acquisition of certain assets
acquired between 13 December 2008 and 31 December 2009.
Small business taxpayers will be able to access the concession
on the acquisition of assets costing $1,000 or more. For all other
business taxpayers the acquisition threshold is $10,000.
The concession, in the form of an additional tax deduction of 30
per cent of the asset's cost applies to assets acquired between
13 December 2008 and 30 June 2009, where the asset is also
installed before 30 June 2010.
Where assets are acquired between 1 July 2009 and 31 December
2009, and installed ready for use before 31 December 2010, the
deduction will be 10 per cent of the asset's cost.
The additional deduction will be claimable in the financial year
in which the asset acquired first becomes installed ready for use,
with the uniform capital allowance provision in the Income Tax
Assessment Act 1997 to be amended to provide a mechanism for
The one off tax deduction will be on top of the usual capital
allowance deduction taxpayers are entitled to claim for an
Eligible assets are tangible assets used in carrying on a
business in Australia for which a deduction is available under the
existing uniform capital allowance provisions. The benefit will
also be available for new expenditure on existing assets.
30 per cent deduction to business on assets acquired between 13
December 2008 and 30 June 2009
10 per cent deduction to business on assets acquired between 30
June 2009 and 31 December 2009
Threshold of $1,000 on asset acquisitions for small business
Threshold of $10,000 on asset acquisitions for all other
Available on top of the usual uniform capital allowances
associated with an asset
Deductions available in the financial year in which the asset
acquired is first installed ready for use.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Exemptions or concessions on stamp duty could apply when contemplating the purchase or transfer of NSW real estate.
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