The announcement is aimed at Division 40 depreciable assets of the Income Tax Act. Certain costs of a fitout (gyprock walls etc) are considered fixtures will come under Division 43 Capital Works and will therefore not be eligible for the bonus deduction. But other Division 40 expenses of a fitout should qualify.
Legislation hasn't been released yet but we should expect it to be follow the above idea. Elias Bizannes http://liako.biz On Mon, Feb 23, 2009 at 12:03 PM, Geoff McQueen - Hiive Systems < geoff.mcqu...@hiivesystems.com> wrote: > Good heads up mate. > > > > If you're a startup who's most expensive operating capital is laptop or > some kit from Dell that won't break the $10K limit, you might want to think > about a chattel mortgage for a (new) car. > > > > From what I understand, in a Chattel Mortgage, you get the GST back at the > end of the quarter you buy it, the interest you pay on the > mortgage/loan/finance for the car is tax deductible, and you own the capital > in your businesses name. > > > > With this in mind, you could look at almost a 20% saving on the sticker > price of a set of wheels (which are already heavily discounted thanks to an > imbalance in supply and demand)… in previous year's I've bought company cars > on one of the last weekends in June, and bought the previous year's models > (so this year I'd be getting a 2008 model) and they've often been desperate > to make targets from 'factory' that are calculated on financial year > volumes) as well as the fact the last year's compliance plated models by > this time are really hard to sell… > > > > Just an idea for those here not building buildings or buying expensive > plant and equipment. > > > > Elias: do you know if fitout costs for an office move be covered in this > scheme if they're >$10k in aggregate? > > > > Geoff > > > > *From:* silicon-beach-australia@googlegroups.com [mailto: > silicon-beach-austra...@googlegroups.com] *On Behalf Of *Elias Bizannes > *Sent:* Monday, 23 February 2009 11:46 AM > *To:* silicon-beach-australia@googlegroups.com > *Subject:* [SiliconBeach] Tax breaks for capital investment > > > > Hola > > > > A colleague of mine (who works in tax) has informed me about a new tax > break to encourage investments by businesses. For those of you with growth > businesses (my way of differentiating an actual startup and a former startup > ie, growth businesses generate actual revenue to cover their expenses), this > might be relevant to you. > > > > > ----------------------------------------------------------------------------------------- > > As you may be aware, the Government announced on 12 December 2008 it would > introduce a 10% investment allowance, in the form of an additional tax > deduction, to encourage businesses to undertake capital investment. On > Tuesday 3 February, the Government announced a second economic stimulus > package increasing that investment allowance to 30%. > > > > The investment allowance will be a 'one-off' bonus tax deduction equal to > 30% (10% for expenditure after 1 July 2009 - refer below) of the cost of the > new asset, or new expenditure on an existing asset, and can be claimed > through the income tax return for the year in which depreciation is first > claimed for the asset. Accordingly, the asset must be used or installed > ready for use before the deduction can be claimed. > > > > Below we have provided specific details regarding the eligibility for the > bonus deduction for your reference: > > > > The deduction is available for "new" and "tangible" depreciating assets > (intangible property such as software, patents, copyrights etc is excluded) > or new expenditure to existing depreciating assets - it will not apply to > trading stock of course; > > The qualifying depreciating asset must be acquired for $10,000 or more; > > The taxpayer must commence to hold the asset under a contract entered into > between 13 December 2008 and 30 June 2009 (or construction must begin > between those dates); > > The qualifying depreciating asset must be used in Australia in a business > carried on for the purpose of deriving assessable income, or used outside > Australia but for the purpose of deriving Australian assessable income; and > > The asset must be used or installed ready for use by 30 June 2010. > > > > There is also an extension of the investment allowance beyond 30 June 2009 > to allow a 10 per cent bonus tax deduction for assets (costing $10,000 or > more) acquired between 1 July 2009 and 31 December 2009, provided it is > installed ready for use by 31 December 2010. > > > > If you are considering any future capital expenditure, you may wish to > consider bringing this forward to prior to 30 June 2009 to take advantage of > the higher 30% bonus tax deduction. Taking advantage of the bonus deduction > prior to 30 June 2009 effectively means a 9% discount on the purchase of the > qualifying depreciating assets. > > > > Further, if you are selling product to customers which are depreciable > assets, this should be a strong talking point for your sales teams to your > customers i.e. your customers will benefit from a 9% discount if they bring > expenditure forward to pre 30 June 2009. > > > > Please note that the above comments are based on statements released by the > Treasurer and we have not yet seen legislation. Attached below is a link > and pdf copy of the announcement. > > > > ------------------------ > > > > > > > Elias Bizannes > http://liako.biz > > > > > > --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Silicon Beach Australia mailing list. No lurkers! 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