For immediate use
November 10 2009
Small Business managers urged to take advantage of tax break
VACC, the peak Automotive Industry body in Victoria, is calling on Small Business
owners to act quickly, in order to optimise the Federal Government’s Small Business
tax break.
Under the current legislation, Small Business is entitled to claim a 50 percent bonus
tax deduction, for eligible assets, costing more than $1000 acquired by 31 December
2009, and installed ready for use by 31 December 2010.
Under the terms of the legislation, a Small Business is defined as having a turnover
of less than $2 million per annum.
All other businesses have access to a 10 percent tax break for eligible assets
contracted by 31 December 2009.
The recent VFACTS figures, released by FCAI, for October, show new vehicle sales
are up on a year ago for the first time in 16 months. The Small Business tax break has
contributed to this increase, as suggested by the improvement in the light commercial
sector, which is up 3.4 percent.
However, VACC is concerned that a number of business vehicle and fleet managers
have not yet fully utilised the investment allowance.
“The Federal Government has provided a positive stimulus to the new vehicle sector
and employers are advised to make the most of it,” VACC Executive Director, David
Purchase, said.
“Any Small Business owner considering upgrading or improving the company vehicle,
or fleet, should contact their local new vehicle dealer today. They should use the
Small Business tax break to purchase the best and safest vehicle for the job.
“The Government has stipulated that the installation, or delivery, of an eligible asset
does not have to be completed until 31 December 2010. However, the paperwork
must be signed-off by the end of this year.
“VACC urges Small Business owners to consider maximizing the Small Business tax
break. But they have to act fast as time is running out. The Government has shown
with other incentive schemes that once they run their course, that’s it. The Small
Business tax break will not be extended, hence the sense of urgency for employers
and managers, to take advantage of this one before it ends,” Mr Purchase said.
To find out more about the Small Business tax break, visit: vacc.com.au
Ends.
NEWS 
