DP LOEWY & CO

Government Announcement - 3 Feb 2009

Investment Allowance

This tax break will be available to small businesses (with turnover of $2m or less) for purchasing eligible assets of $1,000 or more. The asset threshold for other businesses will be $10,000.

The tax breaks will apply to new tangible assets or new expenditure on existing assets used in carrying on a business for which a deduction is available under the core provisions of Div 40 of ITAA 1977 (Capital Allowances).

An additional deduction of 30% (over capital allowance) will be available for an eligible asset acquired from 13 December 2008 to 30 June 2009 and installed before 30 June 2010..

For eligible assets costing $1,000 or more that they acquire from 1 July 2009 to 31 December 2009, they can claim an additional 10 per cent deduction where they are installed by 31 December 2010.
 

Tax bonus for working Australians

A bonus of up to $950 will be available from April 2009 to eligible Australian resident taxpayers who paid tax for the 2007/08 financial year after taking into account available tax offsets and imputation credits.

A $950 bonus will be paid to eligible tax payers with a taxable income in 2007/08 of up to $80,000. A $650 bonus will be paid to eligible taxpayers with a taxable income in 2007/08 exceeding $80,000 to $90,000 and a $300 bonus will be paid to eligible taxpayers with a taxable income in 2007/08 exceeding $90,000 to and including $100,000.

Taxpayers should lodge their 2007/08 tax return by 30 June 2009 to be eligible for the tax bonus.

Single income family bonus

A single income family bonus will be paid to families who receive Family Tax Benefit Part B (FTB-B). Each eligible family will receive one $950 payment, irrespective of the number of children.

The payments which will be made by Centrelink in the fortnight commencing 11 March 2009 will be non-taxable and will not be counted as income for social security purposes. The small number of families who claim FTB-B as a lump sum will receive their one-off payments from Centrelink in 2009/10 or 2010/11 after their 2008/09 tax returns have been processed by the Tax Office.

A single income family bonus will be paid to families who receive Family Tax Benefit Part B (FTB-B). Each eligible family will receive one $950 payment, irrespective of the number of children.

The payments which will be made by Centrelink in the fortnight commencing 11 March 2009 will be non-taxable and will not be counted as income for social security purposes. The small number of families who claim FTB-B as a lump sum will receive their one-off payments from Centrelink in 2009/10 or 2010/11 after their 2008/09 tax returns have been processed by the Tax Office.

The material contained in this newsletter does not constitute advice. Any transmission or receipt of information via this newsletter does not intend to create a professional services relationship between DPL and the visitor.
DPL is not responsible for any action taken in reliance on any information contained in this newsletter. Anyone reading the newsletter should not act upon material contained in this newsletter without appropriate consultation.
 

Disclaimer - The material contained in this newsletter does not constitute advice. DPL is not responsible for any action taken in reliance on any information contained in this newsletter. Anyone reading the newsletter should not act upon material contained in this newsletter without appropriate consultation.