Recent Government Bonus's
17 February 09Small Business Tax Break: You may recall the Temporary Investment Allowance which we had advised you of previouslythat entitled businesses to an additional 10% tax deduction on all plant and equipment purchases of $10,000 or more purchased between 13 December 2008 and 30 June 2009. The new economic stimulus package will increase this allowance to 30% along with dropping the minimum spend to $1,000 for small business (Businesses with a turnover of over $2 million will remain at $10,000).
An example of this benefit is, if you were to purchase $10,000 worth of Plant & Equipment, you will be entitled to an immediate $3,000 (30%) tax deduction for the purchase of that item.In addition to this, the purchase of the Plant & Equipment will be treated as a capital item and depreciated over the life of the asset as normal.
This benefit will cease at 30 June 2009, however the 10% immediate tax deduction will continue from 1 July 2009 to 31 December 2009.
$900 Tax Bonus for Working Australians: This bonus is based on the level of income contained in the 2008 income tax return of working Australians who have (and will) lodge their income tax returns prior to 30 June 2009. Individuals should be eligible for tax bonuses of:
$900 for a taxpayer with taxable income less than $80,000;
$600 for a taxpayer with taxable income between $80,001 and $90,000; and
$250 for a taxpayer with taxable income between $90,001 and $100,000.
Futhermore, to be eligible for the tax bonus, the taxpayer must have had a net tax liability taking into account total tax payable plus medicare levy less any tax offsets or imputation credits. In summary, to be eligible, you must have paid income tax without receiving a full refund of all tax payments made during the 2008 financial year.
The timing of when you receive your payment will depend on when your return was lodged and processed by the ATO. Those who have already had their return assessed will be the first to receive their payments beginning in April. If you do not lodge your return until after payments have commenced will not receive a payment until your return has been lodged and processed.
Payments will be made in the same manner in which you received your assessment. Most commonly, will be by cheque via our office. If your refund was deposited directly into your account, you will receive your bonus payment in this same manner.
Farmer's Hardship Bonus: Farmers who are experiencing hardship due to drought conditions and others receiving Exceptional Circumstances related income support will receive a on-off bonus of $950. This payment will come via Centrelink in the fortnight commencing 24 March 2009.
Single-Income Family Bonus: This bonus is to single-income families who are entitled to Family Tax Benefit Part B. This bonus is for $950 and will be paid through Centrelink. Families who claim their FTB Part B through Centrelink on an annual lump sum basis will receive their on-off bonus upon their 2009 claim.
Back to School Bonus: This bonus is proposed for families who are entitled to FTB Part A, this bonus is for $950 per child of primary and secondary school age. Families will receive the one-off bonus in their fortnightly claim beginning the period after 11 March 2009. Families who claim their FTB Part A payment on an annual lump sum basis, will receive their one-off bonus(es) through the lodgement of their 2009 income tax returns or claim. Please note that this one-off bonus is on top of the Education Tax Refund which we have advised you of previously.
Training and Learning Bonus: This one-off bonus of $950 is proposed for students who receive the following Government Allowances:
Austudy/Abstudy
Youth Allowance
Newstart Allowance
Veterans' Children Education Scheme
Military Rehabilitation and Compensation Act Education and Training Scheme
Parenting Payment (must be studying)
Education Entry Payment.
If you currently receive any of the above payments and are currently studying or are enrolled to study, you will receive the one-off bonus via Centrelink in the fortnight beginning 24 March 2009 along with your fortnightly Government Allowance.
Free Ceiling Insulation: The Government is installing ceiling insulation which will cut around $200 per year off the energy bills of households. You are eligible if you:
Are a home owner-occupier (i.e. you live in your own home)
Don't already have ceiling insulation
Are installing insulation in an existing home on or after 3 February 2009 (excludes new homes or extensions to existing homes)
Are an Australian citizen or permanent resident aged 18 years or over.
The program commences on 1 July 2009. If you have installed ceiling insulation from the announcement date of 3 February 2009, you will be able to seek reimbursement up to a maximum amount of $1,600. (Remember to keep your receipts).
To qualify for the assistance, the insulation must be installed by an installer who owns or is employed by a registered businesses operating in the installation of thermal insulation.
If you would like to discuss any of these topics further please feel free to contact one of our friendly accountants at our office on 07 5413 9300.
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