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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    We have special arrangements in place for people affected by the recent natural disasters such as the Queensland and northern New South Wales floods, and the Victorian bushfires.

    If your tax records were lost or destroyed, we can help you to reconstruct them, and make reasonable estimates where necessary. We have set up a dedicated emergency support infoline to assist you - phone 1300 304 975 and one of our officers will discuss your situation and the best way we can help.

    Other ways we can help are:

    • we can fast track refunds
    • we can give you extra time to pay debts - without interest charges
    • we can give you more time to meet activity statement, income tax and other lodgment obligations - without penalties
    • we can help you if you are experiencing serious hardship.
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    Small business and general business tax break

    The Tax Laws Amendment (Small Business and General Business Tax Break) Act 2009 has introduced an investment tax break for Australian businesses. Broadly, the tax break provides an additional tax deduction of 50% (for small business entities), 30% or 10% (for all other business entities), of the cost of eligible new tangible assets that are to be used in a business and for which a deduction is available under the core provisions of Division 40 of the Income Tax Assessment Act 1997 (ITAA 1997). In order to claim the tax break, certain conditions must be satisfied; for example, the eligible asset must be acquired and first used, or installed ready for use, within a specified time frame.

    For more information see Small business and general business tax break.

    Carbon sink forests

    The Tax Laws Amendment (2008 Measures No. 2) Act 2008 encourages the establishment of carbon sink forests to reduce greenhouse gas emissions. This law allows the following deductions for the costs incurred in establishing trees in a carbon sink forest:

    • For such trees established in the 2007-08, 2008-09, 2009-10, 2010-11 or 2011-12 income year, you can claim an immediate deduction for the costs of establishing the trees.
    • For such trees established in the 2012-13 or a later income year, you can claim a maximum capital write-off rate of 7% of the costs of establishing the trees (conditions apply).

    You can find these new rules in Subdivision 40-J of the ITAA 1997. For further information, visit our website at www.ato.gov.au

    Capital gains tax (CGT) - extension of small business concessions

    The Government has introduced into Parliament legislation to increase access to the small business CGT concessions for:

    • taxpayers owning a CGT asset used in a business by a related entity, and
    • partners owning a CGT asset used in a partnership business.

    At the time of printing these instructions, this change had not become law. For more information, visit our website at www.ato.gov.au or phone the Business Infoline.

    CGT - further amendments to the small business concessions

    In the 2009 Federal Budget, the Government announced a transitional rule that will extend the time for taxpayers to choose to access the small business concessions, where that choice arises from changes to the concessions announced in the 2008 Federal Budget and the 2008-09 Mid-Year Economic and Fiscal Outlook. This extension of time will apply to CGT events that happen before the day on which the amending legislation receives royal assent.

    The concessions for assets acquired on the death of an individual will be extended to cover assets that have passed to a testamentary trust, where the individual would have been able to access the concessions at the time of their death. This extension will apply to CGT events that happened in the 2006-07 and later income years.

    The provisions which treat as dividends certain distributions to entities connected with a private company will be excluded from applying to the small business CGT retirement exemption. This exclusion will apply from the royal assent of the amending legislation.

    This measure was introduced into Parliament together with the changes to the concessions that were announced on 19 March 2009.

    Tax exemption for clean-up and restoration grants

    The clean-up and restoration grants paid to small businesses and primary producers affected by the Victorian bushfires will be exempt from tax, as announced in the 2009 Federal Budget.

    Last modified: 27 Apr 2010QC 21791