Does my small business qualify for the 30% Investment Tax Break?
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If you have read anything about the Federal Government’s proposed 30% investment tax break – I am sure you would know that there are two “tiers” under which your business could qualify for the tax break. Depending on the size of your business, this could have a significant impact on what your business could claim under the tax break.
To find out if your business qualifies for the 30% tax break, lets take a look at what has been said in parliament. As mentioned by the Treasurer – Wayne Swan – when he introduced the Tax Laws Amendment (Small Business and General Business Tax Break) Bill 2009 into the House of Representatives…
Small business entities need to invest a minimum of $1,000 to qualify for the tax break. All other businesses need to invest a minimum of $10,000
Which begs the next question… what is the definition of “Small Business”. The good news is that this is defined in the Explanatory Memorandum of the bill.
In section 1.76…
A taxpayer is a small business entity for an income year, rather than at a point in time. Section 328-110 provides that a taxpayer is a small business entity for the current income year if they:
- carried on a business during the previous year and their aggregated turnover for that year was less than $2 million; and
- expect their aggregated turnover to be less than $2 million again in the current income year
To read more about the difference between a small business and a general business under the Small Business and General Business Tax Break – make sure you read through the Explanatory Memorandum