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04 Feb 09 $42 Billion Nation Building and Jobs Plan announced

On 3 February 2009, the Prime Minister, Kevin Rudd, and the Treasurer, Wayne Swan, jointly announced the Government's $42 billion Nation Building and Jobs Plan to support jobs and to invest in future long term economic growth. Key tax measures funded by the Nation Building and Jobs Plan include:

  • A tax bonus for working Australians of up to $950 paid to every eligible Australian worker earning $100,000 or less (estimated at up to 8.7 million individuals), and
  • A temporary business investment tax break for small and general businesses buying eligible assets.
Details of the tax bonus provided by the Treasurer are as follows: A lump-sum payment of up to $950 will be made to eligible taxpayers from April 2009. The bonus will be available to Australian resident taxpayers who paid tax in the 2007-08 financial year after taking into account available tax offsets and credits. Taxpayers will not need to apply for the payment. The ATO will automatically make the payment after determining eligibility. The bonus is subject to an income threshold test as follows:

  • $950 bonus will be paid to eligible taxpayers with a taxable income of up to and including $80,000;
  • $650 bonus will paid to eligible taxpayers with taxable incomes exceeding $80,000 and up to $90,000; and
  • $300 bonus will be paid to eligible taxpayers with incomes exceeding $90,000 up to and including $100,000.
Details of the small business and general business investment tax break provided by the Treasurer are as follows: Small businesses can claim an additional 30% tax deduction for eligible assets costing $1,000 or more that they acquire from 13 December 2008 to 30 June 2009, and install by 30 June 2010. For eligible assets costing $1,000 or more that they acquire from 1 July 2009 to 31 December 2009, they can claim an additional 10% deduction where they are installed by 31 December 2010. To benefit from this tax break a small business must have a turnover of $2 million a year or less. Other businesses can receive the same deductions for eligible assets greater than $10,000.

In a media release issued on3 February 2009, the Commissioner, Michael D’Ascenzo, said that work is underway to ensure the ATO can start paying the Australian Government’s tax bonus from early April 2009.

“At this stage we believe most eligible people won’t have to do anything to receive the proposed payment,” Mr D’Ascenzo said. “By using information in people’s 2007-08 tax return we will work out who is eligible and the best way to get the payment to them. Most people have already lodged their 2007-08 return with us, but if you haven’t, don’t leave it any longer. The proposed tax bonus will only be paid to those who have their 2007-08 return in by 30 June 2009."

For a copy of the joint media release announcing the Nation Building and Jobs Plan, No 2009/008, 3 February 2009, go here.

For a copy of the joint media release detailing the tax bonus, No 2009/010, 3 February 2009, go here.

For a copy of the joint media release detailing the investment tax break, No 2009/012, 3 February 2009, go here.

For a copy of the Treasurer's factsheets on the Plan, go here.

For a copy of the ATO media release, No 2009/07, 3 February 2009, go here.

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