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The Small Business and General Business Tax Break (business tax break) is a temporary extra tax deduction introduced in December 2008. It applies to plant and equipment you need to purchase to keep your business going and is available for new, tangible, and depreciating assets. It also covers improvements or additions you make to existing assets. 

Your eiligibility for the business tax break depends on whether you:

  • Carry on a business
  • Buy the asset by the deadline
  • Use or install the asset by the deadline
  • Meet the minimum thresholds
  • Use the asset mainly in Australia
  • Use the asset mainly in your business
  • Can claim a deduction for the asset declining in value (under section 40-25 of the Income Tax Assessment Act 1997).

Small businesses can claim a 50% tax deduction on eligible assets. All other eligible businesses can claim a 30% or 10% bonus deduction.

NOTE: The business tax break is in addition to the deduction for decline in value which your business is entitled to claim for an eligible asset.

MORE: Click here for examples of situations where a business tax break would apply.

MORE: Click here to find out how to claim the business tax break.


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