The Government has announced the Small Business and General Business Tax Break:

Small businesses (with a turnover of $2 million a year or less) will be able to claim a bonus deduction of 30 per cent for eligible assets costing $1,000 or more that they:

• acquire or start to hold under a contract entered into between 12:01am AEDT 13 December 2008 and the end of June 2009, or start to construct between these times; and
• have installed ready for use by the end of June 2010.

Small businesses will be able to claim a bonus deduction of 10 per cent for eligible assets costing $1,000 or more that they:

• acquire or start to hold under a contract entered into between 1 July 2009 and the end of December 2009, or start to construct between these times; and
• have installed ready for use by the end of December 2010.

A minimum expenditure threshold of $10,000 will still apply to all other businesses.

Assets eligible for the allowance are new tangible depreciating assets and new expenditure on existing assets used in carrying on a business for which a deduction is available under the core provisions of Division 40 (Capital Allowances) in the Income Tax Assessment Act 1997.

The deduction is on top of the usual capital allowance deduction claimable for the asset as part of the taxpayer's income tax return.

ALSO: one-off payments for low and middle income households and individuals