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Australian Business Tax Allowance Bill Becomes Law

June 4th, 2009

Category: Retail Business News

Some Businesses have less than 30 days to start contracts!
The proposed tax allowance bill that was drafted in February of this year has become law. In a previous article article we discussed the impact this would have on businesses large and small. Originally it was proposed that this would allow be a 30% Tax deduction allowance and the purchase time window would expire June 30th, 2009. For larger businesses the 30% Tax Allowance is the amount of their deduction and they still have to make commitments before June 30th, 2009. But for smaller businesses the deduction has been raised to 50% and the deadline is extended until December 31st,2009 for small companies. Clearly if you are a principal in a larger business and you were waiting for the bill to pass for purchases, time is imperative. There is less than 21 days until the end of this deduction timeframe.

Tax Allowance Large Biz - Australia

Tax Allowance Large Biz - Australia

The earlier information from the Australian government, our company, and others was that this would be a 30% Business Tax Allowance Deduction on depreciable physical items over $1,000 AU. If a company has over $2 million in turnover yearly, the passed bill could make them eligible for  tax deductions of 30% beyond their normal allowed deductions.

Larger Businesses – (Over $2 million turnover) – Timeframe is Urgent – 1 month!
The bill has passed and that is good news for companies that have made any eligible purchases since December 13th of 2008, but if you were waiting for the bill to pass before committing to additional purchases, and your business is classified as large, then the time to commit is approaching very quickly! This is why we rushed this article out and are sending the newsletter as soon as possible. If your company’s gross sales or turnover is over $2million it would be very beneficial to be able to make a commitment before June 30th of 2009. After this date the deduction increase goes down to 10% of the purchase price.

For Small Business – (less than $2 million turnover) – 50% Tax Deduction!

Tax Allowance - Small Biz - Australia

Tax Allowance - Small Biz - Australia

But the good news for small businesses (less than $2m turnover) is that the percentage rate of the purchases that are deductible has been raised to 50%. We are happy to announce that Point of Sales servers, terminals, scanners, and peripherals seem to be eligible when installed as new systems and upgrades. Apparently the legislators wished to reward small businesses more.

For Small Business – Extended Deadline from June to December

For businesses classified small there is additional good news in that the deadline for eligible purchases has been extended until December 31st of 2009. This seems like a reasonable decision as honestly, with us being a hardware, software, and service provider we were a bit concerned about the time from the voting on the bill, to the initially proposed cutoff date, customers would only have about a month and a half to make a purchase. We were not sure what amount of time pressure there might be to start consultations about the best retail system, the hardware and software needed and to get a quote to customers that would allow them to make a decision. But the second part of the good news is that smaller businesses have until December of this year to make a decision.

Recommendation: We recommend calling us or emailing us as soon as possible to get more information about our retail business systems and what they can do for your business. Please let us know that you are interested in the Tax Allowance for your purchases and we will work to explain the legislation and design a system for you as soon as possible.


Creative Computing has systems to help ensure you always have the right products available for your customers. We provide Point of Sale, Inventory Management, Accounting, and General Ledger integrated which makes your data accessible to you from any location.

Our core product CONTROL is an integrated and scalable Retail Management System for retail stores, wholesale, franchise and manufacturing businesses. It provides a unique blend of premade modules, custom integration and tuning to give businesses the great results, more reliably, faster, and more cost effectively than completely custom solutions.

To find out how we can help you run your business please tell us about your business or visit us at our homepage.