What’s new for business in 2009

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There are some changes to tax over the past year which may affect your business.

Small business and general business tax break

A small business and general business tax break for business in the form of an additional tax deduction is now available for new investments in eligible tangible depreciating assets.

If you run a small business, that is, you have an annual turnover of less than $2 million, you may be eligible for an additional tax deduction of 50 per cent of the cost of eligible depreciating assets you purchase between 13 December 2008 and 31 December 2009.

All other businesses may be able to access an additional tax deduction of 30 or 10 per cent depending on when the eligible asset is purchased and installed ready for use.

12 month GIC free payment arrangements

Small businesses struggling to meet their payment obligations in the current economic downturn may be eligible for a 12 month general interest charge (GIC) free payment arrangement.

This is available to any small business with an annual turnover of less than $2 million that has an activity statement debt.

All payment arrangements negotiated from 1 June 2009 until 30 June 2010 will have GIC remitted for the period the payment arrangement is maintained (up to a maximum of 12 months).

Any business that thinks it needs assistance should contact the Tax Office as early as possible on 13 11 42 to discuss their circumstances.

Businesses with a debt less than $25,000 can call the Tax Office’s automated phone service on 13 72 26 which operates 24 hours a day, seven days a week. Businesses using this option will still be eligible for a 12 month GIC free payment arrangement.

Payment deferral for BAS debts

The Tax Office is offering a deferral of the payment due date for activity statement liabilities for small businesses with an annual turnover of less than $2 million.

The deferral is intended to provide relief to small businesses facing financial difficulties and encourage them to keep their tax matters on track.

A deferral of up to two months can be granted for quarterly and annual payers and up to one month for monthly payers.

Activity statements still have to be lodged on time and no interest applies for the period of the deferral.

Businesses can contact the Tax Office on 13 11 42 to request a deferral of payment on their next activity statement.

The deferral applies to activity statements which are required to be lodged and have not yet been lodged.

Special arrangements for people affected by bushfires and floods

Special arrangements are 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, the Tax Office can help you to reconstruct them and make reasonable estimates where necessary.

Phone the Tax Office’s dedicated emergency support infoline 1300 304 975 to discuss your situation and the best way we can help.

Other ways the Tax Office can help are to:

• fast track refunds
• give you extra time to pay debts – without interest charges
• give you more time to meet activity statement, income tax and other lodgement obligations – without penalties, and
• help you if you are experiencing serious hardship.

Tagged as: Income tax, Small Business

Article by Christie Lewis

Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.

Christie has written 811 awesome articles for us at Alan Lewis Accountants – BLOG

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