Small business tax break

The federal government is offering an extra tax deduction to small businesses on plant and equipment purchases. The tax break covers new, tangible, depreciating assets as well as improvements or additions made to existing assets.The asset must be bought and used or installed within certain timeframes in order to be eligible for the tax break.If your business has a turnover of less than $2m, then to qualify for the 50% tax break you must buy the asset before 31 December 2009 and install it before 31 December 2010.For businesses with an annual turnover of $2m or more, the tax break is 30% and applies to assets bought before 30 June 2009 and installed before 30 June 2010.For more information, visit the ATO website.