What assets are eligible for the 30% Investment Tax Break?
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Generally there are a number of criteria your asset needs to meet to be eligible for the Tax Break:
- The asset needs to be new – not second hand
- You need to buy the asset between 13 December 2009 and 30 June 2009 (for the 30% tax break) or between 1 July 2009 and 31 December 2009 (for the 10% tax break)
- The asset needs to be a tangible depreciating asset
- The new investment needs to be greater than $1 000 ex GST for Small Businesses (Rev < $2mil), or greater than $10 000 ex GST for General Businesses, for each asset (or set of identical assets – review section 1.19 of the explanatory memorandum for more info)
- The asset needs to be used principally in Australia
… and obviously – if you don’t pay tax in the first place, you can’t claim a tax break!
If you want to get into the nitty gritty legalese – check out sections 1.11 though to 1.21 in the Explanatory Memorandum of the Tax Laws Amendment (Small Business and General Business Tax Break) Bill 2009. Note that there are a few exceptions – especially when looking at Cars – so make sure you talk to your accountant!