The accuracy of the content is not guaranteed. Please rely only on the authorised document. Senior Tax Counsel at CPA Australia, Paul Drum today welcomed the GST Start-Up Assistance Office’s announcement that small to medium businesses could buy items of plant and equipment, such as computer hardware, with their $200 GST vouchers. Mr Drum also urged businesses to consider purchasing their equipment before June 30, 2000, in order to benefit from the new voucher concession and the extension of tax deductibility recently announced by the Treasurer. "We previously wrote to the Government on this matter," said Mr Drum. "CPA Australia believed that the original timeframe meant that the $200 vouchers available to small business on GST registration would have been due to expire at a point when many businesses would need them most." Mr Drum warned that businesses might not consider purchasing equipment to become GST-ready until they completed their first Business Activity Statement, which, for many businesses, would be in October 2000. However, to be eligible to receive the voucher, they needed to order the equipment by 30 June 2000. "It is also pleasing to see that the Government has recognised the importance of encouraging businesses to embrace computer technology and e-commerce, which will be of long-term benefit for business, as will tax reform," said Mr Drum. Today’s announcement comes soon after an extension by the Treasurer (May 23) concerning tax deductibility for SMEs for plant to be used for GST-readiness. The extension means that deduction will be allowable in the year ending 30 June 2000, provided that the equipment was ordered by 30 June 2000, and installed by 30 June 2001. This provides an extra 12 months for installation whilst retaining full deductibility.
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