Thanks to the Australian Government investment allowance, small and large businesses will now be able to claim an increased tax deduction of the cost of eligible assets acquired between 13 December 2008 and 31 December 2009, and installed by 31 December 2010.  For small businesses, the tax deduction is 50%; for larger businesses, the tax deduction is 30%.

Small businesses (with turnover less than $2 million p.a.) need to invest at least $1,000 to qualify for the tax break. All other businesses need to invest a minimum of $10,000 to qualify.

On a $15,000 server this could equate to an extra $7,500 as a “one off” tax deduction for a small business, or $4,500 for a large business.  Or $2,000 worth of computer hardware could equate to a $1,000 “one-off” tax deduction for a small business, or $600 for a large business.

What can you buy from Corporate Express?
• Computer Equipment, hardware, servers and notebooks
• Business Furniture
• Audio Visual supplies – interactive white boards and multi-media projectors
• Backup, storage and networking devices
• Point of Sale Technology
• Photocopiers, printers and multi-function devices
• And much, much more…

Don’t delay!  Begin organising your capital equipment needs early to avoid missing out on this important tax break.

Simply contact your Corporate Express Account Manager or 13 26 44 to get started.

*Please seek your own tax advice for the application of the Investment Allowance and for more information on the allowance, visit the Federal Government Treasury website at: www.treasurer.gov.au

Key dates to consider

Small Businesses
13 December 2008 – Date from which new purchases can be claimed
31 December 2009 – Cut-off for the purchase of the equipment
31 December 2010 – Equipment must be installed/in use (if required)

Larger Businesses
13 December 2008 – Date from which new purchases can be claimed
30 June 2009 – Cut-off for the purchase of the equipment (enter into binding contract to acquire equipment)
1 July 2009 - 31 December 2009 – Secondary cut-off (reduced 10% allowance still applies) for contracts dated after 30 June, but prior to 31 December 2009.
30 June 2010  – Equipment must be installed/in use (if required)

Please note: the information in this document is from the Australian Government and the complete 2009 UEFO Fact Sheet can be found online at: http://www.treasurer.gov.au/DisplayDocs.aspx?doc=factsheets/2009/005.htm&pageID=011&min=wms&Year=&DocType=3