Labor's tax cuts to help IT resellers sell to consumers

By on
Labor's tax cuts to help IT resellers sell to consumers

The Federal Government's monetary steps to ensure the retail market remains buoyant can be the perfect time for IT retailers to attract customers.

The Education Tax Refund (ETR) was a government initiative, introduced in July 2008.

It means eligible parents, carers, legal guardians of primary and secondary students and independent students could get 50 percent back on some education expenses.

Eligible expenses include the cost of buying, establishing, repairing and maintaining any of the following items; laptop computers and home computers; computer-related equipment such as printers; USB flash drives; as well as disability aids to assist in the use of computer equipment for students with special needs; computer repairs; home internet connections; computer software for educational use; school textbooks and other printed learning material; including prescribed; textbooks, associated learning materials, study guides and stationery; and prescribed trade tools for secondary school trade courses.

Most people are eligible for the ETR because they receive Family Tax Benefit (FTB) Part A.

However, there are some payments that prevent you from receiving FTB Part A, but which still entitle them to receive the refund.

People will be able to claim the refund from 1 July 2009 for the 2008/09 financial year. This means you can claim for items purchased from 1 July 2008.

On top of the ETR, the Federal Government will fund an investment tax break for all Australian businesses, as part of its $42 billion stimulus package.

The Small Business and General Business Tax Break will mean; a small business that buys and installs a $2,000 computer before the end of June 2009 can claim an additional $600 deduction in its 2008-09 tax return.

A business that buys and takes possession of a $60,000 backhoe by the end of June 2009 can claim an additional $18,000 deduction in its 2008-09 tax return.

Small businesses can claim an additional 30 per cent tax deduction for eligible assets costing $1,000 or more that they acquire from 13 December 2008 to 30 June 2009, and install by 30 June 2010.

For eligible assets costing $1,000 or more that they acquire from 1 July 2009 to 31 December 2009, they can claim an additional 10 per cent deduction where they are installed by 31 December 2010.

To benefit from this tax break a small business must have a turnover of $2 million a year or less. Other businesses can receive the same deductions for eligible assets greater than $10,000.

Assets eligible for the allowance are new tangible depreciating assets and new expenditure on existing assets used in carrying on a business for which a deduction is available under the core provisions of Division 40 (Capital Allowances) in the Income Tax Assessment Act 1997.

Ian Grieve, owner of Toowoomba-based, Computer Ambulance, said there is no doubt in his mind, that the huge increase in sales over the last couple of months, has been due to monetary steps the Federal Government has taken. 

"People are buying more new notebooks and desktops than in previous years because they can claim part of the expenses against their Kids use," he said.

"We have never been busier and this week has improved yet again." 

Got a news tip for our journalists? Share it with us anonymously here.
Tags:

Most Read Articles

Log In

Email:
Password:
  |  Forgot your password?