POS Solutions are telling newsagents (through their blog) that they have 15 days left to access the 50% invetsment allowance. With many newsagencies turning over less than $2 million, there is no rush – the 50% tax break is available until the end of this year.
To help reduce confusion, click here for details on the tax break (investment allowance) offered by the federal government from late last year and enhanced in this year’s budget:
The Small Business and General Business Tax Break legislation has received Royal Assent and is now law.
The business tax break, in the form of an investment allowance, provides:
Small business entities (turnover of less than $2 million a year):
An additional tax deduction of 50 per cent of the cost of eligible new tangible depreciating assets where the business commits to investing in the asset between 13 December 2008 and 31 December 2009 and first uses the asset, or installs it ready for use, or (in the case of new investment in an existing asset) brings the asset to its modified or improved state on or before 31 December 2010.
Other business entities (turnover of $2 million or more a year):
- an additional tax deduction of 30 per cent of the cost of eligible new tangible depreciating assets where the business commits to investing in the asset between 13 December 2008 and 30 June 2009 and first uses the asset, or installs it ready for use, or brings the asset to its modified or improved state on or before 30 June 2010.
- an additional tax deduction of 10 per cent of the cost of eligible new tangible depreciating assets where the business commits to investing in the asset between 13 December 2008 and 30 June 2009 and first uses the asset, or installs it ready for use, or brings the asset to its modified or improved state between 1 July 2010 and 31 December 2010.
- an additional tax deduction of 10 per cent of the cost of eligible new tangible depreciating assets where the business commits to investing in the asset between 1 July 2009 and 31 December 2009 and first uses the asset, or installs it ready for use, or brings the asset to its modified or improved state on or before 31 December 2010.
While I would not ant to get in the way of newsagents who want to improve business efficiency through an investment in technology, I’d suggest that there is no need to rush unless your revenue is above $2 million (retail sales plus agency commission).
Rather than listen to you and Bernard bitch about who is right or wrong, I would suggest newsagents contact their accountant or someone who actually knows their own situation.
Local, fair enough. Also, the ATO has good advice, advice which POS Solutions is spinning to alarm enwsagents.
I have been informed by through my enquiries that software is intangible therefore not elegible for the investment allowance be it 30% or 50% Could someone please verify?
Graeme, software is not eligible. Hardware and some hardware related services are eligible. The ATO has said they will watch for manipulation of charges- to check if software is ‘covered’ elsewhere.
Thanks Mark that’s what I thought