HP is rolling out a new communications program to educate channel partners and customers about the enhanced tax breaks for small businesses included in the Federal Government's budget.
HP Personal Systems Group marketing director, Grant Cleary, said the increase of the tax deduction on capital asset purchases to 50 per cent (up from 30 per cent) and its extension to December 31 from June 30 along with the new ability to aggregate assets is a big plus for the SMB ICT industry.
“We see it as being very important, I personally would see it as being one of the major initiatives the Government has introduced in recent times,” Cleary said.
“The original legislation applied to a single asset purchase. This meant that if someone purchased a computer worth $1000, a monitor for $300 and a docking station worth $200, they could only claim on the computer because that met the $1000 threshold.
“Now because the total value of those is worth $1500 and because they’re a set that goes together, they can claim the 50 per cent depreciation on the $1500. It’s also a group of identical assets, so you could buy ten monitors at $500 each…and you could get 50 per cent depreciation on that $5000."
HP will be rolling out the new communications program designed to teach both customers and channel partners directly about the changes and how it can benefit them and their clients on May 19.
However, Cleary recommended caution to those that might rush out to make a purchase.
“A business would probably be wise to get taxation advice from their accountant or call the ATO if they have any confusion,” he said.