Home – New Forums Money matters 50% tax break

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  • #966190
    *Alison*
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    Hi,

    Just quick question whether anyone can answer for me.

    I sell at markets and am seriously considering buying a market pargola gazebo to keep out of the sun over the summer & out of rain in winter :)

    Given that I will be buying this for business purposes only, can I claim the 50% tax break on this? I understand that it will need to be at least $1,000 purchase to qualify.

    Thanks in advanced.
    Alison

    #1016616
    Chris Bates
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    My understanding on that is, yes it needs to be over $1000, and it needs to be brand new.

    #1016617
    [Former] FS Concierge
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    Hi Alison,
    You’ll find a little more info about this over here: http://www.flyingsolo.com.au/forums/money-matters/3506-small-business-general-business-tax-break.html

    Cheers,
    Jayne

    #1016618
    King
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    considering the tax saving on a new car is around $4000, then the tax break on a sun shade would not be overly enticing!

    #1016619
    DanR
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    The 50% tax break is fantastic and have used it myself. We set up our office earlier this year so all the gear and equipment we have purchased we were able to claim the tax break!

    In the end you claim 150%, it’s great!

    As a single person in Australia the government does nothing for me, at least I get small business support – a little.

    Wish they would give some company tax breaks….

    #1016620
    beancounter
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    We are not registered tax agents so cannot give advice in such matters – we are aware of clients that have spoken to their accountants regarding the 50% tax break – and it really depends on the circumstances

    Before rushing into anything, speak to you accountant and do the math

    Your accountant will tell you that anything under $1000 does not fall into that category, but may be an item that you can claim as a 100% deduction off your gross profit before tax and therefore is not regarding as part of your taxable income anyway – similar to stationary, postage, etc

    Confused? So are the “simplified” tax laws

    Like we say, we are not registered tax agents so cannot give advice in such matters, so you need to speak to a registered tax agent

    #1016621
    Integrated Alliance
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    *Alison*, post: 18811 wrote:
    Hi,

    Just quick question whether anyone can answer for me.

    I sell at markets and am seriously considering buying a market pargola gazebo to keep out of the sun over the summer & out of rain in winter :)

    Given that I will be buying this for business purposes only, can I claim the 50% tax break on this? I understand that it will need to be at least $1,000 purchase to qualify.

    Thanks in advanced.
    Alison

    Hi Alison,

    I have a couple of clients who sell at the Pyrmont and Glebe markets and yes, if the gazebo is greater than $1000 you are able to claim the 50% tax break on this based on the fact that it will be used in the business.

    The weather’s getting hot, and the 50% tax break is only available until 31 December 2009 (afterwards 30%) so have fun shopping!

    Cheers
    Andrew

    Andrew Lowe
    Director
    Integrated Alliance Pty Limited
    Chartered Accountants and Business Advisors
    Level 33, Australia Square, 264 George Street, Sydney NSW 2000
    P: +61 2 9212 0696
    M: 0418 235 150
    E: [email protected]
    W: http://www.ialliance.com.au

    #1016622
    Brendan the Bookkeeper
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    To add to Andrew’s confirmation that the Gazebo must be over $1,000.

    The $1,000 is the Exclusive GST amount, so Alison – if you’re GST registered then you’ll need to spend more than $1,100 for it.

    If you’re not registered for GST then you only have to spend over the $1,000 mark.

    Hope that helps!

    #1016623
    gerri
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    • Total posts: 4
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    Sorry to highjack this thread but I just need some clarification on the 50% tax break. If i buy a laptop( for business use only) for $1200 and my taxable income from various sources including my small business is say $30000 do I deduct 50% of the cost of the computer from my taxable income making my taxable income $29400. This is within the 15% tax rate so the saving is 15% of $600, which at $90 is a rather small ammount!

    Am I correct with this reckoning?

    Thankyou in advance

    Gerri (newbie)

    #1016624
    Brendan the Bookkeeper
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    • Total posts: 15
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    Gerri, you are correct about the roughly 15% back from the tax break for the purchase of the laptop.

    But you aren’t factoring in depreciation of the asset, which is affected by the date that you purchased the laptop and whether or not you chuck the laptop in a general pool and be able to claim a further 15% depreciation for the laptop.

    Which roughly equals an extra $180 back on your laptop when factoring in depreciation.

    Another avenue is to depreciate the laptop at diminishing value at 66.67% per year and claim the depreciation based on the date it was purchased.

    Either way you’re effective getting $270 back on a $1,200 laptop, and then some as the depreciation rolls over each year.

    If someone offered you 22.5% off a brand new $1,200 laptop – would you take it?

    #1016625
    gerri
    Member
    • Total posts: 4
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    Thankyou Brendan. It is becoming clearer.

    Gerri

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