Poor advice has been provided by some parties to newsagents about the tax break. The ATO has confirmed that businesses turning over less than $2 million a year have until December 31, 2009 to purcahse eligible items. For more details on this and for the tax break for businesses turning over more than $2 million please click here.
The person at the ATO I spoke with said that they have heard of “manipulations” of invoices to maximise the tax break. One example was software being provided free which had a published price prior to the announcement of the tax break. Such manipulation to avoid tax may be reversed if discovered by the Tax Office.
Time is not running out for many.
UPDATE (11/06/09): The business which provided wrong advice has changed their blog following this post here.
Will the 2 million in turnover include lotto sales Mark?
Andy, I am not accountant and the following should not be taken as professional advice.
Landlords accept you recording agency commission as revenue. This includes Lotto commission but not ‘sales’.
On that basis, I’d expect the ATO to accept lotto commission.
However, I’d ask the question.
Andy, All up I turnover under $2M and my accountant has told me to take advantage of the break. I hope this helps.