New expenditure on existing assets may also qualify.
All other businesses will be able to access a 30% additional tax deduction for eligible assets purchased or ordered under a contract entered into between 13 December 2008 and 30 June 2009, and installed ready for use by 30 June 2010. A 10% tax deduction is available for eligible assets purchased or ordered between 1 July 2009 and 31 December 2009 and installed ready for use by 31 December 2010.
Assets must be used principally in Australia for the principal purpose of carrying on a business and meet certain eligibility criteria.
Small businesses need to spend $1,000 or more on each qualifying asset.
Other businesses need to spend $10,000 or more on an asset.
The cost of items forming part of a set, or the cost of identical or substantially identical assets may be added together to meet the thresholds.
Qualifying assets include new plant and equipment but not second-hand goods or software.
Consult your tax adviser before planning any asset purchase based on this tax break or claiming any of these additional tax deductions.
Find out more information on the business tax break
Further details are available from the joint media release dated 12 May 2009 by the Treasurer and the Minister for Small Business: Media Release No.061/2009.
