Supporting Australian small business

Small Business Tax Break

The Government will inject an additional $141 million to expand the Small Business and General Business Tax Break for small businesses. This provides an even greater incentive to invest in new capital items such as vehicles as well as existing equipment.

Small businesses will be able to claim a bonus tax deduction of 50 per cent of the cost of eligible assets ordered between 13 December 2008 and 31 December 2009 and installed by 31 December 2010. This will give a small business spending $30,000 an extra $6,000 upfront tax deduction. The 30 per cent rate announced earlier this year can still be accessed by all other businesses that acquire eligible

assets before 30 June 2009, as well as the rate of 10 per cent applying for eligible assets acquired before 31 December 2009.

Small Business Assistance

The Government will provide $10 million over two years to establish a Small Business Support Line, which will link to Business Enterprise Centres and provide initial advice and referral services for small business on matters such as obtaining finance and cash flow management. The ATO will also receive $168 million to assist small businesses and help them remain viable.

Small businesses will benefit from the Government's investment in a company to build and operate the National

Broadband Network. The project will support up to 37,000 jobs at its peak.

To enable small businesses to access the benefits of the digital economy, the Government will provide $10 million to eligible organisations to help businesses improve their e‑commerce capabilities.

Improving business cash flow

The Government has also provided cash flow relief to small businesses by announcing reduced PAYG instalments in 2008‑09 and 2009‑10. This complements the Government's earlier guarantee of on‑time payment for small business contracts as well as planned changes to business regulation which will help to reduce compliance costs.