14 May 099 Small Business and General Business Tax Break Bill passed by HouseOn 13 May 2009, Tax Laws Amendment (Small Business and General Business Tax Break) Bill 2009 was passed by the House of Representatives with Government amendment. It was introduced into the House on 19 March 2009.
Prior to the amendments, the Bill amended the income tax law to provide a temporary bonus income tax deduction for new investments in tangible depreciating assets that exceed a certain threshold and that were undertaken between 13 December 2008 and 31 December 2009 ("the Tax Break"). The Tax Break is worked out using a rate of either 30% or 10% depending on when the taxpayer committed to investing in the asset. The Tax Break can be claimed in the income year that the asset is first used or installed ready for use. The amendments apply to assessments for the 2008-09, 2009-10, 2010-11 and 2011-12 income years.
The amendments implement the Government's recent expansion of the Tax Break in the 2009-10 Budget and resolve a number of technical issues. A bonus deduction of 50% will now be available to small businesses that acquire an eligible asset between 13 December 2008 and 31 December 2009 and install it ready for use by 31 December 2010. The previously announced 30% and 10% bonuses will continue to apply to all other businesses.
On 14 May 2009, the Senate passed the Bill without amendment.
The Bill now awaits Royal Assent.
For a copy of the amendments, go here.
For a copy of the Supplementary Explanatory Memorandum, go here.