Time running out for tax break: VACC

THE Victorian Automobile Chamber of Commerce (VACC) has urged business owners to take advantage of the federal government’s small business tax break before it winds up on December 31.

The tax break enables a business with a turnover of less than $2 million per annum to claim a 50 per cent bonus tax deduction, for eligible assets, costing more than $1000. These must be acquired by December 31 and installed ready for use before the end of 2010.

Other businesses have access to a 10 per cent bonus tax break for eligible assets contracted by December 31, 2009.

The incentives are not expected to be extended past the current deadline.

“The small business tax break is one of the government’s better incentive schemes and we urge business owners to take advantage of it,” said VACC executive director David Purchase. “It is of particular benefit to employers and managers looking to purchase a new vehicle or fleet.

“The small business tax break enables a company to select the vehicle they desire and make a commitment to that purchase by the end of this year, without actually having to take delivery of the vehicle until the end of 2010.

“VACC recommends small business owners considering upgrading or improving their work vehicle or fleet, speak to their accountant or financial advisor immediately. Before anything else, employers and managers need to establish if they qualify for the small business tax break.

“Following that, the small business owner can confidently visit the local new car dealer and discuss the suitability and availability of the vehicle.

“The small business tax break is also an opportunity for business owners to improve the safety of their vehicle or fleet. The incentive scheme is a fantastic chance for employers and managers to save money and to invest in the long-term safety of their employees,” he said.