Tax Rebate Available for Website Development
By Sam PascuaIn early February, the Australian Government announced the creation of a temporary Small Business and General Business Tax Break that is designed to “help Australian businesses boost business investment, bolster economic activity and support Australian jobs.”
Small businesses that have an annual turnover of less than $2 million can claim a tax deduction of 10% or 30% of the cost of new depreciating assets, depending on when the acquisition was initiated and implemented, so long as the asset has a value of at least $1,000. Larger businesses must spend at least $10,000 to qualify for the tax deductions.
This is the government’s way of helping to support small- and medium-sized businesses during the global recession. The tax break has tremendous potential to stimulate business investment and the Australian economy, because it provides powerful incentives for businesses of all sizes. For example, purchasing and installing a $2,000 computer before July 1 yields a tax deduction of $600 for the business. The only “catch” is that the investment must be made before the end of the 2009 for the 10% deduction, or before July 1 for the 30% deduction. So now is the time to act!
Since most websites are considered to be depreciating assets, this is great news for small- and medium-sized businesses that are considering creating a new website or expanding their existing site. However, it is important to speak with a tax accountant before making any asset acquisitions in order to make sure they’re eligible for the tax break.
There has never been a better time to invest in your company’s online presence. Many different types of website improvements could be eligible for the tax break, helping you reach out to new customers and increase sales. We’d be happy to speak with you to discuss the possibilities for your company.
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