As the Christmas sales approach, the Assistant Treasurer, Senator Nick Sherry, and Small Business Minister, Dr Craig Emerson, are reminding business owners they have only a few days left to take advantage of their own big discount.
"The Rudd Government's small business tax break runs out on December 31 – so it really is a case of hurry, hurry, hurry," the Assistant Treasurer said.
"It's a double win for small business – a 50 per cent tax break on goods they could be buying at reduced Christmas sale prices."
"It's also a win for the economy and jobs. Taking advantage of the 50 per cent deduction will help small businesses retool and upgrade, while boosting the economy."
"However, businesses need to commit to investing before the end of this year."
The business tax break offers small businesses a 50 per cent tax deduction on eligible assets that cost $1,000 or more, as long as their annual turnover is less than $2 million.
Eligible businesses can claim this 50 per cent extra tax deduction for the year the asset is first used or installed.
The Rudd Government announced the tax break in December 2008 and extended it in the May Budget.
"Assisting small businesses deal with the impacts of the global financial crisis has been a priority of the Government's stimulus strategy," the Minister for Small Business said.
"Small businesses have responded magnificently, as shown by the latest figures for new vehicle sales," Dr Emerson said.
"The 15.8 per cent jump in vehicle sales in the year to November is a great recovery from the 18 per cent fall in the year to November 2008."
"Australians in small business have done their bit to help the country avoid the worst effects of the global recession," Dr Emerson said.
The Assistant Treasurer said a wide range of assets are eligible for the tax break.
"An eligible asset could be a business vehicle, computers, furniture, tools and equipment," the Assistant Treasurer said.
"Businesses can also combine the cost of items designed and intended to be used together to take them over the $1,000 threshold."
"The only conditions are that the assets are new, tangible, depreciating and must be for a business purpose."
To claim the tax break a business must enter into a contract by 31 December 2009 under which they will hold the asset.
Businesses then have until the end of 2010 to have the asset installed ready for use.
An information kit is available at www.ato.gov.au and calls can also be made to the business tax break info line on 1300 337 921.