Small business have received some tax relief in the Budget, with the Government increasing the Small Business and General Business Tax Break (Investment Allowance) from 30 percent to 50 percent.
The 50 per cent deduction will be available on new capital worth $1,000 or more, such as vehicles, purchased between December 13, 2008, and December 31 this year.
The eligible items must be installed and ready for use by December 31, 2010.
According to the Government, small business are the “engine room of the Australian economy” and that this measure will help them to “invest, bolster economy acidity and support Australian jobs.”
Businesses with turnover of less than $2 million will be able to use the benefit, in a measure costing the government $141 million.
Small business will also benefit from the Government’s plan to open a $10 million small business support line to help business owners cope with the recession. The services offered could include advice on securing finance, managing cash flow, and leasing retail premises.
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