Australian small and medium businesses now have an extra year to pay for and install computer equipment needed for GST-administration -- and still claim an immediate tax deduction on these purchases.
The Australian Federal Treasurer Peter Costello has relaxed the conditions of an existing tax break designed to soften the impact of the introduction of the GST.
Computer equipment that would normally require depreciation over three years can be immediately claimed -- if it is needed for GST-administration -- under a measure announced late last year.
But until now, companies were required to have taken delivery and installed the equipment before the cut-off date of June 30, in order to qualify for the deduction.
With just six weeks to go before the new tax system comes into effect, this restriction has been cut and those behind schedule on implementation, or final payments, can take a breath.
Companies are required to have simply ordered the equipment by June 30 and they will still qualify for an immediate deduction, as long as the systems concerned are implemented within the next year, Costello reportedly told an industry meeting in Sydney last night.
Costello said the deduction will be worth around AU$175 million to the SME
sector. The tax break is available to companies with a turnover of up to
AU$10 million.
www.gststartup.gov.au
