Login
Government plans tax deductions for business
BUSINESSES WILL see an increase in the range of tax deductions available to them under the federal Government’s plan to provide systematic treatment under the tax laws for business…
Lawyers Weekly
BUSINESSES WILL see an increase in the range of tax deductions available to them under the federal Government’s plan to provide systematic treatment under the tax laws for business expenditure.
When business expenses are not recognised under the income tax laws, black holes occur. The Review of Business Taxation identified a need for an appropriate treatment of black hole expenditure, the Treasurer said last week.
The proposed systematic treatment includes permitting deductions for capital expenditure incurred by businesses and carried on for a taxable purpose. It also provides deductions for particular pre-business expenditure incurred by existing businesses, and recognises this expenditure in a new provision that will apply where the expenditure does not have tax treatment or is denied a deduction.
The new provision will apply to expenditures incurred on or after 1 July 2005. The Government is expected to conduct confidential targeted consultation on the details of the proposals.
