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Budget 2009: Small Business tax break boosted from 30% to 50% 

The Federal Government will increase the business tax break for assets purchased before the end of 2009 from 30% to 50%

Originally the tax break was set at 30% for assets over $1000 that were purchased between 13/12/08 and 31/12/09 and installed by 31/12/09.

Under the old system if you purchased a machine for $30,000, the business was able to claim a bonus deduction of $9000 on its tax return.

Now with the 50% tax break, the business will be able to claim a tax deduction of $15,000 (50% of $30,000).

"The increase tax break provides small business with an even greater incentive to invest in new capital items, such as computer hardware and business vehicles, and to make capital improvement to existing machinery and equipment," Small Business Minister Craig Emerson said in a statement.

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