Hospitality businesses will not have to wait until tax time to benefit from the Federal Government’s new business tax breaks under a deal announced by hospitality equipment finance company Silver Chef .
The temporary business investment tax break – part of the Federal Government’s $42 billion National Building and Jobs Plan – is designed to keep the economy moving by providing extra tax relief for companies buying capital assets. Under the government’s $2.7 billion plan, businesses will be able to claim deductions for capital assets, on top of the usual capital allowance deduction able to be claimed as part of the taxpayer's income tax return.
Silver Chef Managing Director Allan English welcomed the government’s plan, saying it would provide significant benefits for business and industry- Upgrading equilment thus boosting productivity, leading to long term profit increases.
He said Silver Chef, which has financed hospitality Australia-wide for more than 20 years, would offer the tax allowance on new equipment and assets bought under its Rent-Try-Buy solution.
“The Rent try Buy solution allows customers to take advantage of the economic stimulus package while still holding on to their valuable working capital. Importantly, it provides a great way for companies to access new equipment and boost sales in difficult times.
Under the deal, the deduction will be offered on contracts for new equipment settled before June 30, 2009. When the customer makes the decision to purchase the asset – at anytime – Silver Chef will deduct the ‘cash in hand’ effect of the tax allowance from their purchase price.